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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.
Evalute an environmental problem and explain how one of the three groups might resolve it? There is no word limit for the solution.
Did the government spending increases and large budget deficits of 2008-2011 strengthen aggregate demand?
Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker and that a college economics student asks you to rank.
illustrate what would be the government spending multiplier. What would be the taxation multiplier.
Traditionally, taxi drivers were only paid by the mile. A couple of decades ago, Yellow cab experimented with paying the same per mile rate plus a fixed fee every time a customer got in the cab. How does this change driver behavior?
An automobile factory sold $10,000,000 in automobiles to final consumers. Given these events, calculate the GDP of Autoland using a. the final goods approach. b. the value-added approach.
llustrate what will be the equilibrium price also quantity in the market. Illustrate what is the total market profit also consumer surplus.
For what proportion of these corporations the rate of return negative? For what proportion of these corporation was the rate of return between 5% and 15%?
if sugar protectionism has the bad effects stated in the editorial, why dont congress and the president eliminate it?
What curve would be shifted (demand or supply) and in what direction (left or right) if there was a decrease in the tax rate or interest income from 20% to 15%?
q. the road runner club contributes money to senator slys reelection campaign fund and senator sly helps pass
assume that government establishes a cost floor below market equilibrium for rents on how utilizing. Illustrate what will be main effects of this cost floor. Demonstrate your answer graphically.
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