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You are Secretary of the Treasury Jack Lew. It's six months into Obama's second term as president and you receive some estimates of national accounts numbers you plan to report to the President in a cabinet meeting. Under one set of expectations, government expenditures will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Under another set of expectations, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 billion, and investment will be $40 billion.
a. Based on these numbers in the first case there should be a surplus or deficit of how much?
b. Under the second scenario, there should be a surplus or deficit of how much?
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You want to invest in a hot dog stand near the ballpark. You have 0.35 proability that you can turn your currnt $15,000 into $50,000 and a 0.65 probability that fierce completion will drive you to ruin losing all your money. If you decide not to e..
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Explain why would economists be very concerned if the annual interest payments on the debt sharply increased as a percentage of GDP.
According to Colander, the perfect definition of economics. The three central coordination problems any economic system must solve.
Edgemont Company had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005 Edgemont had assets of $350,000,
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Compute the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.
A certain machine expenses $25,000 to purchase and install. It has salvage values and operating costs as demonstrate in the table in the attached file. The salvage value of $20,000 listed at time 0 reflects the loss of installation costs at the time..
Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..
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