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Suppose Congress votes to decrease corporate income tax rates. Use the AD/AS model to analyze the likely impact of the tax cuts on the macroeconomy. Show graphically and explain your reasoning. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?
durable goods pricing. consider the example discussed in class. the monopoly sells two units of goods over two periods.
Suppose they remain in the same place for the next five years, the Bergholts would like to know if it is better to buy or rent the home.
In an economy, Aggregate Demand is greater than Aggregate Supply. Explain the changes that will take place in this Economy.
What are the three categories into which the Bureau of Labor Statistics divides everyone? How does it compute the labor force, the unemployment rate, and the laborforce participation rate?
If China's economy maintains a 7% annual growth rate over thenext 20 years, about how large will its economy be in 20 years ifits current GDP is $12 trillion?
Adverse possession is a means for a person to obtain your property if they meet all of the elements. Should a squatter get your land? Why or why not? What is the statutory length of time in your state that the squatter needs to "possess" your land..
draw lorenz curves for 2 income distributions. can you say which distribution isnbsp more unequal based on the
It turns out that the city of Tucson cannot enforce the minimum wage very well and they cannot tell employers whom to hire. An underground market for jobs develops. The city has limited resources for enforcement, so that they can only catch employ..
For months, beleaguered American customers have defied expert forecasts that they would soon succumb to pressures of falling home prices, fewer jobs and shrinking paychecks.
Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:
Assume labor's share of GDP is 70% and capital's is 30%, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3%.
Explain several dimensions of the shareholder-principal conflict with manager agents known as the principal-agent problem. To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devot..
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