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If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd))
-Wouldn't this answer just be GDP will be reduced by 75 billion? I am not sure why the consumption function is given for this problem?
Describe the problem of “adverse selection” when health insurance is offered at a community rated premium? Define the term “community rated premium” as well. Is it possible to address the problem of adverse selection by increasing the premium level? ..
How do the instruments of contraction monetary policy work in principle.
Trace a copy of this diagram. Graphically depict the substitution and income effects. 2.2. Which effect is strongest? How can you tell?
If the price of soybeans increases and all other crops’ prices remain the same, then:
The makers of Tylenol pain reliever do a lot of advertising and have loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol
How does imposing rent controls affect the number of housing units available to low-income families? Illustrate your response using graphs.
In 2011, the government of Greece ran into severe financial difficulties. For years, the Greek government had spent much more than it had received in tax revenue, financing the substantial budget deficits by borrowing.
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25,000 cases of cola were sold every week at a price of $7 per case. After the tax, 18,000 cases of cola are sold every week; consumers pay $8 per case (includin..
Based on this example, discuss and defend whether or not big countries such as the United States should be worried about what is happening in small countries such as Greece. Elucidate general conclusions from this case that might be applied elsewh..
You are a monopolist producing video game software and know you can segment your market into two distinct groups of consumers: kids who will pay almost any price for your software, and older consumers who are very price-sensitive. Assuming all the sa..
q.assume that over the short run say the next five years demand for opec oil is given by q 57.5 -.5p or equivalently p
Comput the following with an explanation how you arrived at each result. The Amount Consumers will spend on new consumption.
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