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1.Under what circumstances might a tax reduction be associated with a long-run increases in real national income and a long-run reduction in the price level.
2. suppose that there is a recessionary gap. discuss one discretionary fiscal policy action that might eliminate it.
Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is:a.negative and therefore these goods are substitutes
What was the relationship between cotton and the slave economy in the antebellum American South. was cotton expansion necessary for the continuation of slavery. Was slavery necessary for the growth of the cotton industry.
If a firm in a perfectly competitive market experiences a technological breakthrough, A. other firms would find out about it eventually B. other firms would find out about it immediately C. other firms would not find out about it D. s..
Use the demand and supply analysis to explain how higher price of corn impact the market for Ethanol (a motor fuel manufactured from corn and can be used to power the engines of many Automobiles).
The marketing team for a restaurant wants to estimate the price elasticity of demand coefficient for its steak dinner. It priced its dinner at different price points in local restaurants to see how many would be sold at different prices.
how can an economy that is below its potential output level attain equilibrium at potential output and shift the aggregate demand schedule to the left?
Determine which country has absolute advantage in production of tanks and explain why is it this country?
Most people are consumers, making demand decisions in product markets, and also workers, making supply decisions in resource markets. How do workers choose how much of their labor service they are willing to sell Is the quantity supplied likely to ..
How many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?
Discuss the implication to Economic Efficiency of an economy operating at point and what would it take for the economy to operate at point Z?
Choose a market for a good in your area that seems to be a perfectly competitive market. Write four or five substantive paragraphs that describes the market and answers the following questions: Identify the buyers and sellers as well as the goods o..
If the ce If the of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then, (according to the arc price elasticity formula,the same formula used in class).
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