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Suppose the US economy experiences deflation. Trace through the impact on US macroeconomic variables to the effect on FOREX rates. Be specific and detailed about the mechanism of action. In your judgment, is this good or bad for the US and support your answer with detailed, analytical and factual evidence.
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
Give the before-tax charcoal price and quantity exchanged. Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.
Let the market demand for rye bread be given by Q = 500 + I - 250P rye + 400P wheat , where Q is monthly demand in number of loaves, I is average monthly income in dollars
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
Essay on Market imperfection associated with negative externalities.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
An essay on Market imperfection associated with negative externalities.
Consider a competitive market for which the quantities demanded and supplied (millions per year) at various prices are given as follows:
Compute total revenue, marginal revenue, total cost and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?
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