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Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on the marginal propensity to consume?
An asset is expected to be used in a project that will last 5 years. The MACRS property class for this asset is 3 years. If B = 10,000 and S = 3,000 at the end of year 5, determine the depreciation schedule.
In economics, when you plot cost and revenue on Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue. This is the crucial notion to understand.
If there is a constitutional requirement to maintain a balanced budget, then during a recession when tax revenues are shrinking, the government will have to implement
Market supply of labor The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours per week (QT) supplied to the market.Hourly Wage Hours per week
What is total variable cost when 100 units of output are produced and what is average fixed cost when 150 units of output are produced?
What are the consequences for farm output as a result of this guaranteed price and what does the term "equilibrium" mean in the context of a market economy?
Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then: aggregate demand will decrease, aggregate demand will increase.
What happens to the student's budget line? Illustrate the change with new books on the vertical axis. Is the student worse off or better off after the price change. Explain.
Determine which of the following nations would you expect to have intertemporal production possibilities biased toward current consumption goods,
Why is the demand of labor a derived demand Explain the shape of the supply of labor curve. What is the relationship between productivity and the wages earned by an employee What are some factors that determine the level of your income
A channel of distribution: A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. B) is only needed when products must be stored. C) must include one or more intermediarie..
Using two graphs, show consumer surplus before and after government intervention.
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