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Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spending multiplier is called the balanced-budget multiplier, defined as the increase in real GDP/increase in government spending. By following the example from the previous question, how mcuh is the balanced-budget multiplier?
Explain why fitting a line of best fit through observed price and quantity combinations over time is not likely to yield good estimates.
What are the efficient quantities for each of the two periods? What are the correspondingprices and MUCs?
From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?
Based on the assumption that each family spends $100 plus one-half of its total income each week, what is the total weekly consumption spending of a poor family prior to instituting the tax? What is the total weekly consumption spending of a rich ..
Explain the effects of the $26 a week increase in the minimum wage on the workers' surplus and the firms' surplus. Has the labour market become more efficient or less efficient? Explain and show the welfare measurement analysis in the graph.
Consider a family that ranks combinations of household production time (N) and purchased goods and services (Y) according to the formula: U= NY. Suppose the maximum time available in a day is 16 hours, the wage rate is $4 per hour and the fa..
Interpret the components of mathematical equations that explain the linear programming problem for each of the following:
This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tax imposed on imports is called:
What price will consumers pay after the tax is levied and what proportion of the tax will be paid by the suppliers of Martin guitars?
An increase in the excise tax on alcohol? a)will have no effect on alcohol consumption b)will generate minimal tax revenues for the federal government c)couped with a uniform drinking age nationwide would save lives
Write down a short memo to Ralph Sampson describing the analysis that the company should do before it makes this decision and any other considerations that would affect decision.
What is the minimal wage that must be offered to Yumi for her to sign this new wage contract and what is Yumi's expected revenue when she works hard? What is Yumi's expected revenue when she does not work hard?
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