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1. Define fiscal policy. Determine whether each of the following, other factors held constant, would lead to an increase, a decrease, or no change in the level of real GDP demanded:
What is the consumer surplus after the Pigouvian tax is imposed? Do consumers of oil like the outcome with the Pigouvian tax? What does this say about the political practicality of using Pigouvian taxes to correct negative externalities?
Explain whether each of the following events shifts the short0run aggregate supply curve, the aggregate demand curve, both, or neither. for each event that does shift a curve draw a diagram to illustrate the effect on the economy
What is the present worth of the following income strings at an interest rate of 12%? (All cash flows occur at year end.)
a) Explain what happens to observed prices in posted offer and double auction markets when there at least two sellers. b) Explain what happens in these two markets as the number of sellers drops to only one seller.c) explain how part b) illustrates t..
In comparing two otherwise identical industries X and Y, an economist finds that labor demand is more elastic in industry X. Which of the following would support this finding?
At what quantity would a monopolist maximize profits given the following information about her costs and market demand. Total cost of production TC=3000 + Q2. Market demand is given by : Q=3200-2P. What is the firms revenue function,
The necessary change in taxes and government spending and the effect on aggregate demand, GDP, and employment.
Wall Street responded by increasing SkyWest's market valuation from $143 million to $1.1 billion after the arrangement was made. Explain, in economic terms, how this arrangement with Delta and United could have caused the value of SkyWest to incre..
Explain why would this be described as a Prisoner's Dilemma game.
British Prime Minister Lady Thatcher planned a poll tax that levied an equal amount of tax on every citizen regardless of his or her income.
In a certain economy, the multiplier for government purchases is 2 and the multiplier for changes in fixed taxes is 1.5. The government then proposes to raise both spending and taxes by $100 billion.
A business have 4-lockbox collection centers that average $235,00 in payments each day. Payments are invested daily in shortterm securities at collection center banks.
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