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Automatic stabilizers
A. include tax rates and transfer payments
B. require active policy to work
C. have significant inside and outside lags
D. are not described by any of the above
Alvin’s demand for a product is QdA=10-P and Betty’s demand is QdB=5-P. Calculate Alvin and Betty’s marginal and total willingness to pay for 4 units of consumption of this product. Explain it graphically. Derive the aggregate demand function. What i..
how should he change his bundle to reach his optimum? Explain your answer using the marginal utility condition at the optimal choice.
A tropical country can produce winter coats, but there is no domestic demand for these coats. Explain how this country can gain from free trade in winter coats.
What are the equilibrium price and quality? What is the market outcome if the price is $2.75? What do expect to happen? Why? What is the market outcome if the price is $4.25? What do expect to happen? Why? What are the equilibrium price and quality i..
Illustrate what is true about the prices they are able to charge and their revenue if they try to practice second degree price discrimination as the Bills did.
John lives for three periods. He is currently considering two alternative education-work options. Alternative 1: he can start working immediately, earning $100,000 in period 1, $110,000 in period 2, and $120,000 in period 3. Alternative 2: he can spe..
Give two distinct reasons why studies might show that physicians firm might use too few nurses and other aides relative to profit maximizing amount of those two types of input.
Harry values a new jacket at $100 and buys it from Jenny at $80 (costing her $70 to produce it). Jim then offers Harry the same jacket at $60. Harry buys the jacket from Jim, and stops buying it from Jenny. Which of the following makes this event Par..
Suppose the Congress decides to reduce transfer payments but to increase government purchases of goods and services by an equal amount. That is it undertakes a change in fiscal policy such that ΔG = - ΔTR. Find the change in equilibrium income. What ..
Handy Manufacturing Industry Trade Association recently published the following estimates of Demand and Supply relations for hammers. Calculate the perfectly competitive industry equilibrium price/output combination.
q.in year 1 and year 2 there are two products produced in a given economy computers and bread. suppose that there are
write a four to five 4-5 page paper in which you1. explain why government regulation is or is not needed citing the
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