What are the long run consequences of each option

Assignment Help Microeconomics
Reference no: EM13187270

A policymaker is deciding how to finance the construction of a new airport. He can either pay for it by increasing citizens' taxes or by printing out more money. What are some short run and long run consequences of each option?

Reference no: EM13187270

Questions Cloud

How much was the growth rate of real gdp : Suppose the real GDP of a country increased from 2,000 billion to 2,100 billion in one year. In the same year, population growth rate was 3%. How much was the growth rate of real GDP per capita in that year
Name the 3-dimensional solid : A vertical cross section of a certain 3-dimensional solid is parallel to the base and forms a rectangle. The horizontal cross section is perpendicular to the base and is also a rectangle. Name the 3-dimensional solid.
Participant in the webster-hayne debate : Summarize the major points of each participant in the Webster-Hayne debate. Explain why the text's authors can claim that Webster "probably did more than any other person to arouse the incoming generation of Northerners to fight for the ideal of the ..
How many friends went on the trip : A group of friends decided to rent a vacation home for a week. They each paid $70 towards the rent. If three more friends had joined them, the cost per person would have been reduced by $14. How many friends went on the trip?
What are the long run consequences of each option : A policymaker is deciding how to finance the construction of a new airport. He can either pay for it by increasing citizens' taxes or by printing out more money. What are some short run and long run consequences of each option
What is the value of the mean square for treatments : What is the value of the mean square for treatments (the "between groups" mean square) that would be reported in a ANOVA test?
Best definition of a constituent : Which of the following is the best definition of a constituent?
How to calculate mole fractions of two sustances : how to calculate mole fractions of two sustances given their weight percentages ,grams
Explain how with trade nebraska can end up : Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of prod..

Reviews

Write a Review

Microeconomics Questions & Answers

  How to improve one-time additive

A producer of synthetic motor oil for automobiles and light trucks has made the following statement: "One quart of Dynolube added to your next oil change will increase fuel mileage by one percent.

  First salary negotiation after graduation

Represents the potential outcomes of your first salary negotiation after graduation and does the ability to move first give the employer an advantage?

  Computing marginal cost of production

Construct a table showing the marginal cost of production. What is the minimum price necessary for the company to supply ten thousand copies? How many copies would the company supply at industry prices of $5,500 and $7,000 per ten thousand?

  Explain value modification-addition

Prove that if the value of G is v1 and the value of H is v2 , then the value of G + H is v1 + v2 . Give an example of G, H which only have a common row strategy, but for which G + H has a different value than v1 + v2.

  Regulating the price of a monopolist

Show graphically how regulating the value of a monopolist can both increase quantity and lower price.

  In praise of price gouging

Using two graphs, show consumer surplus before and after government intervention.

  What is the break-even value for the investments duration

Assume $92,500 is an accurate estimate of the annual savings that will result from this investment, but it is not clear how long the machine will be used. Assuming that the salvage value decrease linearly from $500,000 to $50,000 over a 10-year in..

  Effect of market shocks on equilibrium quantity and price

Briefly discuss whether this problem provides enough information to determine whether the equilibrium price and quantity of trucks increased or decreased.

  How do costs play into your everyday life

When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illuminate this con..

  Graph the demand curve and budget line

Graph the budget line and add the indifference curve for the following situation and also graph the demand curve based on the given information

  Discussion on economics

Discuss why will voluntary actions, undertaken at individual level, be unlikely to bring about significant decrease in greenhouse gases such as CO(2)?

  Determine nancys optimal schooling level

What is Nancy's lifetime income if she gets no schooling? What is it if she goes toschool for all 60 remaining years of her life? In words, describe the "cost" to Nancy ofchoosing to attend school for 1 additional year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd