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Republicans are already eyeing changes to the inflation measure as a way to meet their goal of halving the budget deficit by 2002. The CPI is used to adjust social security and other benefits, and income-tax brackets, for inflation." The suggested changes will lower the deficit because measured inflation will be
a) increased which lowers real taxes b) decreased which increases real taxes
c) increased which increases social security payments
d) decreased which decreases social security payments
A sketch of this firms W/MRP labor market diagram is shown below. The profit maximizing point is labeled (point A) and the blue shaded area is the profit. You should be comfortable handsketching the graph below using the information from table A.
Describe the Diamond-Water paradox and the solution. Explain why price is greater than marginal revenue for a single-price monopolist and how this differs from perfect competition.
More job losses in the manufacturing sector helped pull employment down by 390000 in November. Only the fact that the labour force _________ keep the unemployment rate steady.
Many observers believe that the levels of pollutionin our society are too high. Economists argue that appropriate correctivetaxes or tradable pollution rights will resultin efficient pollution reduction. How dothese approaches target the firms that..
Discuss the roles of external economies and knowledge spillovers in shaping comparative advantage and international trade patterns. Introduction, literature survey, theoretical framework, suggested implications and conclusion.
A small-volume automaker limits the number of franchised dealers in the U.S. and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer.
Suppose that your business or organization has obtained a reliable growth forecast of the U.S. and local economies for calendar year 2013. Nature of my Business: I run an Automotive Paint Store that sells paint to the Independent Body Shops.
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
suppose that there is a cultural shift in america emphasizing the importance of saving money as opposed to current
Suppose OPEC breaks apart and oil prices fall substantially. Initially, which curve shifts in the aggregate supply/aggregate demand model? In what direction does it shift? What happens to the price level and real ouput (GDP).
At level of inflation explain how long does it take for the price level to double.
With reference to the simple closed economy income-expenditure model,suppose the aggregate consumption function is C = 100 +0.8(Y – T); taxes areT = 10 + 0.25Y; investment, I, is 300 and government expenditures, G, are 200.
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