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Analyze the effects of each of the following on national saving, investment, and the real interest rate. Explain your reasoning and illustrate it with an appropriate diagram.
(a) Consumer confidence falls, so consumers decide to consume less and save more at every level of the real interest rate.
(b) The government announces a larger, one-time bones payment to veterans returning from a war. The bonus will be financed by additional taxes levied on the general population over the next five years.
(c) The government introduces an investment tax credit (offset by other types of taxes, so total tax collections remain unchanged)
(d) A new technology breakthrough increases the future marginal product of capital and expected future income.
If nothing else changes, what happens to the price and quantity if the supply curve shifts to the right? What is the law of supply? Give two examples of how you have observed the law of supply at work.
Express kinetic energy in terms of the base SI units: the kilogram, meter, and second. Write your answer in terms of the abbreviations ({kg, m, s}), and then identify the resulting derived unit.
a firm in a purely competitive industry has a typical cost structure. the normal rate of profit in the economy is 6.00
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Use a supply and demand diagram to illustrate the following conditions a. Cost -push inflation caused by a labor union successfully negotiating for a higher wage. b. Demand-pull inflation caused by an increase in demand for domestic products from for..
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Quotas imposed on Japanese imports into the United States tend to: penalize both U.S. consumers and Japanese consumers. benefit both U.S. consumers and Japanese consumers.
What is kenyas factor of production for their land and labor. which means what percentage do they use their land for what.
1list the determinants of aggregate demand by component.list the determinants of short-run aggregate supply.3draw
use the following data for a firms output at various levels of employment l to calculate a its marginal physical
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