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Suppose money demand depends on disposable income, so that the equation for the money demand becomes (M/P)^d = L(r, Y-T).
(a) Analyze the effects of a tax cut in an IS-LM model. How does the tax cut shift the IS curve and the LM curve? How are equilibrium interest rate and level of income different from its original level?
(b) Analyze the effects of an increase in the government purchase in an IS-LM model. How does the increase in government spending shift the IS and the LM curve? How are equilibrium interest rate and level of income different from its original level?
Research where you would find the U.S. international trade policies and their history as they apply to various industries.
Given the products below and the events that affect them, indicate what happens to demand or supply, and the equilibrium price and quantity in a competitive market. Identify the determinant of demand or supply that causes the shift.
Illustrate what is the impact of this sale on GDP for 2002. Assume no realtor is involved in the sale.
AH and PPP are price takers and provide a basic Groom and Check service for $40 per pet (dog). AH has fixed costs of $8,000 less than PPP and average variable cost of $33, which is 10% more than PPP. Calculate the cost functions of both firms. Calcul..
Your company plans to buy a new milling machine in 4 years that will cost $290,000. You company will put aside $4000 in the first month and will increase it's monthly amount uniformly each month for the 4 years. If the funds will earn 6% per year com..
Effective marketers are quite aware of the relationship among
the company you work for asks you to recommend whether their mercedes truck should be replaced now or kept in service
Marvin has the utility function U(N, B) = 4N1/2 + B. If Marvin is initially consuming 64 units of nuts (N) and 10 units of berries (B), then what is the largest number of berries that he would be willing to give up in return for an additional 17 unit..
if sugar protectionism has the bad effects stated in the editorial, why dont congress and the president eliminate it?
Suppose that a proposal is under review to strengthen the NPDWS for benzene, and the associated abatement level would generate a marginal social benefit (MSB) that is greater than the marginal social cost (MSC) by $125,000. On efficiency grounds, sho..
Which of the following can occur as a result of advertising in a monopolistically competitive market? Check all that apply.
Suppose that you own a 25 year old movie theatre in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theatre with 4 IMAX screens and 20 more regular screens. For each of the characteristics listed below, ev..
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