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Government decreases current tax, while holding government spending in the present and future constant. (a) How does this effect aggregate output, employment and the real wage? What is the multiplier and how does it differ from the government expenditure multiplier? (b) Now, suppose that there are credit market imperfections in the market for consumer credit, for example due to asymmetric information in the credit market. Repeat part (a), and explain any differences in the answers in parts (a) and (b).
How many units should each plant produce to maximize profit at that price and a perfect competitive firm faces a market price of $10 for its output X
Find Marens consumption in the two periods ( as a function of m1,m2 and r)3) If the interest rises, how will Maren chanhe her consumption in each of the two periodes
The cost of 150 H.P. compressors bought five years ago is as follows. For the first 50 compressors the cost was $2,000 per unit, and for the second 50 the cost was $2,400 per unit. Find the cost of 100 compressors of 200 H.P. rating today.
Thomas Malthus’s gloomy predictions for the future of humanity led ‘economies’ to be called a ‘dismal science’. Show either through the mathematics of production functions or intuitively.
Calculate her utility maximizing choice of food and clothing and calculate the level of utility her optimal consumption bundle gives to her.
Suppose a firm in the short run under perfect competition with P=250, TC=1,000 + 100Q + 2.5Q^2 , and MC=10+5Q-Find out the level of output that the firm needs to produce to maximize profits?
Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. What impact do you suppose farm subsidies are likely to have on the following?
Use a graphical illustration to describe briefly what the influence an increase in immigration on the market supply of labor
Exchange in an island economy.robin and terry are stranded on a deserted island and consume two products, coconut and fish. In a day, robin can catch 2 fish or gather 10 coconuts, and terry can catch 1 fish or gather 1 coconut.
The Big Box Company is a firm in a perfectly competitive industry. The average rate of return on capital in this industry is 10%. Thus, if the Big Box Company earns a 10% rate of return.A perfectly competitive firm is charging $7 and selling 1500 u..
Which of your current costs are implicit, and which are explicit and suppose The Breakfast Club, Inc. offers to pay $800/month to use the building
Research the corporate-level of strategies and evaluate the business-level strategy do you believe is appropriate to offset forces in the industry for Victory Motorcycles. Research a large corporation headquartered in your home state focus on its c..
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