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What is the difference between tax cuts imposed on higher-income households compared with lower- and middle-income households? Discuss the implications for the multiplier and the effectiveness of the tax cuts for boosting GDP.
Suppose that the Fed conducts an open-market purchase of $1,500 in securities from the nonbank public. The Fed pays for these securities using currency, which the nonbank public holds in the form of cash. Show how this transaction affects the liabili..
During the most recent recession General Motors and Chrysler lost huge sums of money in their operation (not counting government bailout money they could not assume they would get). How could they continue to operate at a loss?
A piece of equipment that was purchased two years ago for $59,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Since its performance was less than expected, it was upgraded for $20,000 one year ago. Increased demand now ..
Demand Function: Q=1,000 - 40 P MR=25-0.05 Cost Function: 4,000 + 5Q How do you achieve the optimal price and quantity? How do you formulate the solution?
Suppose that taxes and transfers are fixed, so that a change in the government’s spending is equivalent to a change in its deficit. The multiplier is three. For each increase in the deficit of 100, interest rates rise by one percentage point. When th..
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce widgets. Each firm has a constant marginal and average cost of producing the good that equals 10. Find the best-response function of each firm. Remember tha..
Now illustrate what is the price elasticity of demand. Illustrate what is the cross-price elasticity of demand.
As noted in the chapter, separating the production of electricity from its delivery has led to considerable deregulation of producers. (See page 599 in the textbook.) Briefly explain which of these two aspects of the sale of electricity remains susce..
A fairer distribution of rewards may generate a higher average productive effort on the part of the population in that way enhancing efficiency.
Compute the percentage change in nominal GDP, real GDP also the GDP deflator.
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
Which of the following is not a concern about nudge policies?
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