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Compare the traditional view versus the view of Ricardian equivalence of the effects of a debt-financed tax cut on: i. national saving; ii. current consumption; iii. the real interest rate.
What is Ricardian equivalence? Mention and explain three reasons why Ricardian equivalence might not correctly describe an economy.
Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.
Illustrate what is the difference among the multiplier in a closed private economy also the multiplier in a mixed open economy.
How will you consider the structure of the fresh salmon industry to calculate the forecast. Will you advise the firm to enter the industry.
Which fiscal balance is likely to be influenced and Explain how by treating human capital investments the same as physical capital investments.
The wage in Mexico is $5. The wage in the U.S. is $20. Provide current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Assume the firm is operating in a high-wage country, where capital cost is $100 per unit per day and labor cost is $80 per worker per day. For each level of output, elucidate which technology is cheapest.
If the government unexpectedly levies a five-cent tax on every gallon sold by gasoline retailers, illustrate what will happen to the representative firm's cost curves.
Using the concept of price elasticity explain why the price of basic commodities has to be regulated in price rise.
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
how will Kristine s consumption pattern and welfare be affected
How many workers should the firm hire if the price of the output is $10? Suppose the price of the output falls to $7.50. Illustrate what do you think would be the short-run impact on the firmâ??s production.
The legislature has stated that the $.03 tax will increase goverment revenue by $300,000 per month and raise the price of gasoline by $.03 per gallon. is this correct.
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