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Question 1: Assume that initially the goods and services market is in equilibrium at potential (full-employment level) of output and that the government budget is balanced, that, is government spending equals tax revenues.[A] Now assume that because of headwinds from a credit crunch, consumption and investment fall. Also suppose that the government does not change its spending or taxation policies. What will be the effect on the budget gap, that is, on the difference between government spending and tax revenues? Describe.[B] Assume that the government has a law that the budget must be balanced at every level of income. How must it respond to the credit crunch? Is this a good law? Explain and illustrate graphically with a Keynesian cross diagram.
Compute the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase.
The ending benifit if any should be realized in CAD. How can he complete interest arbitrage. What will be his profit.
Are they required to ensure economic growth and a prosperous country.
For every following events, consider how you might react. What things might you consume more or less of would you work more or less.
Suppose if the discount rate for the stock is 12 percent, at what price will the stock sell.
Important member of the Board of Directors only have some basic training in economics. So you should explain your results intuitively and use the language so that people with only intro level economics can easily follow.
Illustrate what effect does the current supply and current demand have on this product. Describe how each of the 4 factors contributed to the elasticity of the good.
The high employment deficit is estimated at $100 billion. Suppose that the ecomony is operating below full employment and that it will not overheat during year,
Elucidate the policy which change, you would recommend also how this change would be financed.
Describe the functions also role of law in business and society.
Illustrate what shape do you think the marginal benefit curve is for carbon dioxide abatement.
You are a pricing manager at Argyle Inc. - a medium-sized firm that recently introduced a new product into the market. Argyle's only competitor is Baker Company, which is significantly smaller than Argyle.
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