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According to the Keynesian IS-LM model, what is the effect of each of the following onoutput, the real interest rate, employment, and the price level? Distinguish between the short runand the long run. Be sure to express graphically and explain in words.
(a) Increased tax incentives for investment (the tax breaks for investment are offset by lump-sumtax increases that keep total current tax collections unchanged).
(b) Increased tax incentives for saving [as in Part (a), lump-sum tax increases offset the effect ontotal current tax collections].Summer 2015Econ 2102
(c) A wave of investor pessimism about the future profitability of capital investments.(d) An increase in consumer confidence, as consumers expect that their incomes will be higher in the future.
Find the equilibrium price and quantity both algebraically and graphically.
The marginal and average cost curves of taxis in metropolis are constant at $.20/mile. The demand curve for taxi trips in metropolis is given by P = 1 - .00001q, where P is the fare, in dollars per mile, and Q is measured in miles per year.
At which rate will there be an excess supply of money? What does this mean? Describe in detail the adjustment process in the money market when there is an excess demand for money.
How is the US economy different from a command economy and Can the U.S. economy be called a true free market economy?
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provide an example of a product you have recently purchased in which the price changed. determine whether the good was
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What does this say about the elasticity demand for insurance products and what were the insurance companies assuming the elasticity demand would be?
if the price of the imported tv sets was 300.00 in the us.at the beginning of the year how much would you expect the
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