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Suppose that taxes and transfers are fixed, so that a change in the government’s spending is equivalent to a change in its deficit. The multiplier is three. For each increase in the deficit of 100, interest rates rise by one percentage point. When the government increases its spending by 200, what is the change in equilibrium GDP if:
a) For every 1 percent increase in interest rates, investment spending falls by 50.
b) For every 1 percent increase in interest rates, investment spending falls by 100.
c) Investment spending is not affected by interest rates.
Suppose that the authorities had effectively prohibited price-gouging and somehow managed to ensure that their action had no effect on the quantity of ice in the area. What would have been the effect on social welfare?
q1. corporate probability declined by 20 percent from 2008 to 2009. elucidate presentation percentage that would use to
Peggy Sue's cookies are the best in world, or so I hear. She has been offered a job through Cookie Monster, Inc., to come to work for them at $125,000 per year.
In less developed countries, what does the brain drain refer to?
Consider the model of Gaynor & Town (2012) in which hospitals choose quality with a fixed price. Recall that the model begins with a demand specification, qj = sj (zj , z\j ) × D(¯p, zj , z\j ), where the hospital’s market share sj is a function of i..
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
A small truck is purchased for $22,000. It is expected to be of use to the company for 6 years, after which it will be sold for $4,000. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life..
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20?E. What happens to the quantity of labor he demands if the wage increases to w1= $12?
Who of the following people are considered unemployed according to official statistics? (Mark off ALL who are considered unemployed.) choose which?
If Mia views two cups of tea as a perfect substitute for one cup of coffee and vice versa, what is her marginal rate of substitution between tea and coffee?
q1. explain why does production ultimately experience diminishing marginal returns to labor in the short run?q2. what
Why anyone would pay a positive price for a CBOT or NYSE seat and what this price represents. Second, explain why the seat values have changed so much in recent months.
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