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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?
(b) Provide an example of the interaction between each of these groups. (c) Sometimes a fourth group is included. What would that group be. Provide an example of the interaction between this and the groups listed in your answer to (a).
Microeconomics and macroeconomics: Elucidate the differences among the two and why economics is divided into these two subdivisions.
The Microsoft trial has been only one of the biggest investigations of antitrust behavior as the turn of the century.
suppose that you are an intern for a state legislature that is considering how to vote on a bill that would legalize marijuana. An economist has testified that legalization would decrease the price of marijuana by 80% in his estimation.
Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.Can the government make things worse by intervening in markets Are there other options..
An essay on Market imperfection associated with negative externalities.
Two days after his death, the Wall Street Journal ran a lengthy editorial tribute to Ronald Reagan, in the editors' estimation the most important president since FDR. In their paean to the fortieth president, Reagan gets credit for everything from..
Describe how the equilibrium in a labor market with a monoposony employer changes if a minimum wage is set at the competitive level.
Explain how does the timing of lay-off and hiring decisions made by firms explain the misleading characteristic of this indicator.
As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles.Compliance with the law in every situation or else.
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate Explain what is meant by a built-in stabilizer and give two examples
If the demand elasticity for a product is -2, and a profit-maximizing company sells the product for $10, determine its marginal cost?
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