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Q. What are your predictions for the economy of Thrifty peg based on the following policy scenario:1. Suppose the government decides to increase taxes. What happens to total output, disposable income, consumption, public saving, private saving, and national saving? (1) Assume Ricardian Equivalence does not hold,(2) Assume households consume a constant fraction (MPC) of current income in current period where MPC is defined as the marginal propensity to consume out of income and is between 0 and 1.
2. Output, total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions?Average labor productivity = output ÷total hours worked, so that the percentage change in average labor productivity equals the percentage change in output minus the percentage change in total hours worked.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
What is a one invention that had good impact on the international economy and why. What were the impacts of this invention were impact good or bad.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.
The licorice industry is competitive. Each firm produes 2 million strings of licorice every year. Total cost of strings have an average.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.
Results of drilling are 15 dry holes, 12 gas producers, 18 oil wells, and 20 wells producing both oil and gas.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus.
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
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