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Q1. Assume the government decides to fight obesity in America by imposing an excise tax on the saturated fat content of food. The effect of this tax would be to
Q2. Consider a simple Keynesian income-spending model of an economy described by the following equations
C = 210 + 0.75YdI= 300G= 425TR= 120T= 100M = 0.15YX= 220
(a) Compute the equilibrium level of income. Sketch this equilibrium position using a two-dimensional graph.
(b) Assume the government reduces public expenditure by 50. Estimate the change in the equilibrium level of income? Illustrate what is the new equilibrium level of income?
What are the strength of the neoclassical models of labor supply and labor demand. What are the weakness of the neoclassical models of labor supply and labor demand.
Which is a tax on profits generated from mining of iron ore and coal.
explain why an increase in the wage rate for autoworkers will generate more of a negative employment response in the long run than in the short run
Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
Under what circumstances would Gore be better off giving Bush a head start on putting together his presidential ticket.
What will happen to price of old car taken as an inferior goods whose substitute is new car if income of the people rises.
What is the difference between a change in the quantity supplied and a shift in the supply curve.
What would be the new equilibrium exchange rate that would make purchasing power parity grasp for laptops.
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
Suppose that the only input used in the generation of solar energy is sunlight
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