How much should the government should cut taxes

Assignment Help Business Economics
Reference no: EM131094683

Assume that equilibrium GDP is $14 trillion & that potential real GDP is $16 trillion. Also assume that C = 900 + 0.8YD where C is consumption & YD is disposable income. How much should the government should cut taxes to move the economy to potential real GDP?

Reference no: EM131094683

Questions Cloud

Overvalued relative to purchasing power parity : The Economist magazine uses the price of a Big Mac to determine whether a currency is under-valued or overvalues. In July 2012, the price of a Big Mac was $4.33 in New York, 15.65 yuan in Beijing, and 6.50 Swiss francs in Geneva. Was the yuan underva..
Describe some important incident-historical figure : Describe some important incident, historical figure, cultural value, or movement Woodard mentions which you knew nothing about, and explain it's importance in American history. Be sure to bring up something none of your classmates have already talked..
Identify the four basic inputs to an economic system : Identify the four basic inputs to an economic system. What is an entrepreneur? What is an alternative term for private enterprise system? What is the most basic freedom under the private enterprise system?
Use second order conditions to find the firm maximum : The demand price for a monopolistic firm’s product is a function of quantity q and quality s: P(s,q) = s(a – bq) , while the firm’s production cost is a function of quality s only: C(s, q) =0.5s^2. Find all critical points (s,q) of the monopolist’s p..
How much should the government should cut taxes : Assume that equilibrium GDP is $14 trillion & that potential real GDP is $16 trillion. Also assume that C = 900 + 0.8YD where C is consumption & YD is disposable income. How much should the government should cut taxes to move the economy to potential..
Vending machines on your campus has doubled the price : Suppose that the company that owns all of the vending machines on your campus has doubled the price of a can of soda, but they still sell almost the same number of sodas per day because:
Money demand : [Money Demand] (a) Consider the money demand curve in Figure 1 where z=real balances (the real value of buyers’ money nment increases the nominal interest rate from i to i’, please indicate in Figure 1 the change in buyers’ surplus.
Permanent restrictive monetary policy in europe : As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe. A temporary restrictive monetary policy in the United State..
Represents the dollar price per ton of corn in each country : The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – (1/2) PEU QSEU = (1/5) PEU QDUS = 86 – (3/5) PUS QSUS = 30 + (4/5) PUS where QD and QS represent the quantities demanded and supplied in both countri..

Reviews

Write a Review

Business Economics Questions & Answers

  Possible combinations of corn and beans

A farmer’s field grows 30 bushels of corn and 10 bushels of beans. The farmer can either consume these crops herself or trade them, with one bushel of beans being traded for one bushel of corn. Graph the farmer’s budget which is the possible combinat..

  Illustrate what greens fees should the operator set

Illustrate what greens fees should the operator set on weekdays and how many rounds will be played.

  Calculate price elasticity for each type of student

Big State U charges in-state and outstate students different tuition rates. Instate students pay $2000 a term, and respond according to the following demand equation: QI = 23,000 - 2TI where QI = in-state student enrollment and TI = instate tuition. ..

  When in fact the market should only consist of product

Suppose a market is defined too narrowly as product A. That is, the correct definition of the market should include other products as well, such as B, C, and D. Explain how this affects the values of the concentration ratio and Herfindahl index. What..

  The price of cotton rises

The price of cotton rises. What happens in the market for cotton shirts?

  In the hiv drug market

In the HIV drug market, Gilead leads the way. Its products Truvada have sales of $3.1 billion. Stribild ($205 million), Complera ($800 million), Viread ($958 million), and Antripla ($3.6 billion). Note that 2 of these drugs are joint ventures. Compil..

  Production exhibit scale economies or scope economies

A sports store puts designs 12 different designs on sweat shirts. Setup between each design takes an hour and costs $18,000. Once setup, at a cost of $8,000 they can produce 1,000 units. Does this production exhibit scale economies or scope economies..

  Profit-maximizing firm will break even when market price

The figure below shows cost curves for a perfectly competitive firm. Answer the next 3 questions using this figure: Suppose that market price is $2.60.A firm producing 800 units of output. A profit-maximizing firm will break even when market price is..

  Major measures of the quality of service

One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family-held department store selling furniture and flooring had undergone a major expansion in the pa..

  Measure of goodness-of-fit of estimated regression equation

The F-statistic is an alternative measure of goodness-of-fit of an estimated regression equation and defined as the: a)variation not explained b)variation explained c) variation not explained by the regression equattion relative to the variation expl..

  What is participating budgeting

The method used to prepare the budget can also affect the amount of time it takes to complete the budget. For example, companies that use participative budgeting will likely take longer to complete the budget process. What is participating budgeting?..

  Define e-commerce and describe how differs from e-business

Define e-commerce and describe how it differs from e-business. What are the Eight Key Elements of a Business Model and discuss value preposition.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd