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A one billion dollar increase in government purchases will have a greater effect (multiplier is greater) on GDP than a one billion dollar decrease in taxes because:
tax cuts increase the deficit; an increase in government purchases does not.
households generally maintain their level of saving even though taxes rise.
a tax cut is not all spent; instead part is saved.
A wealthy businessman wants to start a permanent fund for supporting research on sustainability. The donor plans to give equal amounts of money for each of the next five years, plus one gift now (i.e., six donations in total), so that $100,000 per ye..
A firm faces a demand where q = 256/p^2 . q is quantity demanded, P is price. Its P2 total cost function is TC = 0.5q^2 + 10 . What is its total revenue function in q? What is its profit function? What is its marginal revenue function? What is its ma..
Suppose you are hired by the Martin guitar company as an economic consultant. You estimate the demand for Martin guitars to be Q = 8000 - 2P. Suppose the supply of Martin Guitars is given by Q = -2000 +3P. What is the equilibrium price of Martin guit..
Elucidate how the asset demand for money as a green line draw the transactions demand-for-money curve.
For each of the following activities, please state "yes" if this activity should be included in the year 20016 Gross Domestic Product for the United States or "no" if this activity should not be included in the year 20016 Gross Domestic Product for t..
Consider the market for wheat. Suppose that productivity growth increases the supply of wheat. If the price elasticity of demand for wheat is relatively inelastic, then the price of wheat will fall by a relatively ____ amount. (large or small)
A simple model of search. Consider an agent who lives two periods. He is unemployed at the beginning of the first period and has a wage offer of w. If he accepts the wage offer w, he will work forever at that wage. What is the expected value of the p..
What would you learn about an economy if you determined that its GNP was growing more quickly than its GDP?
an additional $15 of investment projects in each successive rate of return range down to and including 0-5 percent range. Which of lines on above diagram represents these data.
Classical economists believe that the best monetary policy is:
The owner of a small car-rental service is trying to decide on the appropriate numbers of vehicles and mechanics to use in the business for the current level of operations. Assume that annual (leasing) cost per vehicle is $6,000 and the annual salary..
Changes in the quantity of money lead to real changes in the economy. If this is the case, why would the central bank ever stop increasing the money supply?
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