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Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined).
You also pay federal income taxes as in Table 3. How much tax of each type do you pay if you earn $20,000 a year?
Taking all taxes into account, what are your average and marginal tax rates?
Illustrate what happens to your tax bill and to your average and marginal tax rates if your income rises to $40,000?
Distinguish between the Federal funds rate also the prime interest rate. Why is one higher than the other.
If there were only one seller, illustrate what would be the equilibrium price and quantity.
Compute the equilibrium level of income. Illustrate what is the level of consumption at the equilibrium level of income.
What do you understand Spencer and Kate are the only two demanders of lemonade.
Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine.
If you turn this measure of cost around, illustrate what is the prospect cost of cheese in liters of milk per gram of cheese.
Why would unemployment also job rationing the consequences of setting a minimum wage of 2 dollar every hour in this marketplace
"The cost of a bushel of wheat, which was $3.00 last month, is $3.70 today. The demand curve for wheat must have shifted rightward in last month and today." Discuss
Write down the profit maximization problem for the rm.
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