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During the third quarter of 1997, Japanese GDP was falling at an annual rate of over 11 percent. Many blamed the big increase in Japan's taxes in the spring of 1997, which was designed to balance the budget.
a. Explain how an increase in taxes with the economy growing slowly could cause a recession.
b. If you were head of the Japanese central bank (the same as our FED), how would you respond? What impact would your policy have on the level of investment?
The statistcs shows that government antimonopoly policy has been applied more harshly to the textile industry than the automobile industry. Can you give an alternative explanation for the difference in the number of firms in the two industries?
She says the tax will generate $100,000 tax revenues per month. What assumption is she making.
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The installed cost of a conventional electric hot water heater is $200. A family of four uses an average of 300 liters of hot water a day, which will require $350 worth of electricity each year.
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As per to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. Elucidate is a company violating the optimality rule.
If the incremental federal income tax rate is 34% and the incremental state income tax rate is 6%, what is the effective combined income tax rate (t)? if the satiate income taxes are 12% of taxable income, what now is the value of t?
Is the client’s refusal to procure an audit of Internal Controls over Financial Reporting in violation of Sarbanes-Oxley? Why or why not?
Of the many arguments in favor of tariffs, the one that has enjoyed the most significant economic justification has been the: If the U.S. demand for Korean steel is price elastic, an export subsidy granted to Korean steel firms will increase Korea's ..
In Akerlof’s lemons problem, with symmetric information, suppose that 5 cars are available in equal quantity and with quality levels 0, 1, 2, 3, and 4. Suppose the sellers have a reservation price of $2,000 per unit of quality, and the buyers value c..
If nominal output is $5.28 trillion also the GDP deflator is 20 percent higher than what is the output in the base year other than real output.
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