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Suppose that an increase in marginal tax rates on individual income affects both aggregate demand and aggregate supply. Briefly describe the effect of the tax increase on equilibrium real GDP and the equilibrium price level. Will the changes in equilibrium real GDP and the price level be larger or smaller than they would be if the tax increase affected only aggregate demand? Briefly explain.
According to the Coase theorem, why would a steel plant that creates air pollution agree to curtail production (and, therefore, pollution) if it were not legally liable for the damage the pollution was causing? Must the property right to clean ai..
determine the market structure in which the low-calorie food company operates.use the internet to research two 2 of the
How does the resulting change in the slope of the aggregate demand curve help stabilize inflation when the economy is hit with a temporary negative supply shock?
Jake and Paul run a paper company. Each week they need to produce 1,000 reams of paper to ship to their customers. The paper plant's long-run production function is Q = 4 K^0.75 L^0.25, where Q is the number of reams produced, K is the quantity of ca..
Graph the relative demand curve along with the relative supply curve. What is the equilibrium relative price of apples? How many apples and how many bananas will each country produce at the equilibrium?
Decide how many units of product 1 and product 2 should be produced by using GP given the following information:-Total profit should be at least 260.
Symmetric Equilibrium Suppose that QU1 = QU2 = QE1 = QE2 = 10. Calculate the equilibrium world interest rate, and the current accounts in the United States and Europe in period
Considering the correlation of a company to the economy which would you chose: A company positively, negatively, or not correlated?
A person chooses between leisure and consumption. The utility derived from any combination of leisure and consumption is given by the formula: u = LC - 88C where u is utility, L is the number of leisure hours per week, and C is the number of dolla..
assume the market price of natural gas is 6.40 per mcf thousand cubic feet and production and consumption of gas are 23
in a competitive industry the short-run average variable cost avc of a firm isavc 600 - 20q - 0.5q2a. derive the firms
Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP).
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