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Determine on any market the effect of the following. Do each separately (on a separate graph) starting from an initial equilibrium position for each one.
1. increase in income
2. Decrease in the cost of production.
3. Increase in the price of a substitute good.
4. Increase in the price of a complementary good.
5. An increase in technology.
6. Increase in taste and preferences for the good.
what is national income
In the view of above complications, there is a long-standing debate on whether the fiscal policy should be active or passive in nature. Note that in the Keynesian context; even a p
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what are the purposes of taxation?
Reducing the budget deficit by cutting government spending could conceivably: A. increase income if interest rates rise enough and government spending is more productive than priva
what have you learned from the class
Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0
Q. What do you mean by Capital Flows? With free capital flows, this is a very unreasonable assumption. If we domestic interest rate increase against the foreign interest rates,
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