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If the actual budget deficit is $100 billion, the economy is operating $250 billion above its potential, and the marginal tax rate is 20 percent, what are the structural deficit and the cyclical deficit?
Suppose you contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a year (compounded once per year). That’s probably one less pizza per week! But if you contribute faithfully each week into this account, how much mone..
Analyse the effect of an increase in the price of sim cards on the equilibrium price and equilibrium quantity of cellphones handsets
Describe an efficient market. Give the theory, implications, and empirical evidence about the three forms of the efficient market hypothesis.
Refer to the above table. Now assume there are 100 identical firms in this industry, each of which has the same cost data as the single firm described above. Suppose too that the demand curve for this industry is as shown below: Quantity Price Demand..
A consumer has a utility function, donuts (A) and peaches (B) given by u(A,B) = squareroot AB. Now suppose the price for donuts is .75 cents a unit. what is the maximizing combination of donuts and peaches.
No-state insurance Company has made the following estimate of auto damage for several groups of potential customers who own cars worth $10,000. there are an equal number of customers in each group. No-state is risk-neutral.
An economist has predicted that for the next 5 years, the U. S. will have an 8% annual inflation rate, followed by 5 years at a 6% inflation rate. This is equivalent to what average price change per year for the entire 10-year period?
An artist makes a beautiful instrument that becomes famous throughout the country. A number of claimants arise, each of whom argues that they deserve the flute: the artist who created it, the most talented musician, the poorest musician, the neediest..
The Average Total Cost curve must be rising. The Average Total Cost curve must be below the Marginal Cost curve. The Average Total Cost curve must be above the Marginal Cost curve.
A monopolist faces a market demand curve given by: Q = 70 – P. This monopolist perfectly price discriminate among its customers. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, what are the monopolist’s profits ar..
For each of the following events would affect the euro-per-Canadian dollar equilibrium exchange rate. A. European saves desire to shift funds from euro denominated financial assests to Canadian dollar denominated financial assests. B. European firms ..
A decrease in demand for labor decreases the quantity of labor demanded at all price levels. Assuming the shift in demand is due to a slowing economy, what is the result?
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