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Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to 0.75. Assuming that Ricardian equivalence holds true, what is the effect on equilibrium real GDP? On saving?
The senator is considering tax reform that would dramatically cut tax rates, leading to a supply function under the new tax policy Qs = 4.171P - 110. Illustrate how much money would a typical consumer save each month as a result of the proposed le..
If the bond matures in five years and Jerry can buy one now for £3500, elucidate what is his IRR for this investment.
Expalin why is the depreciation of capital good a cost of society
Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.
A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.
Any goods from all should be of higher demand than supply; the other good should show higher supply than demand.
Illustrate that an increase in government spending can improve consumer welfare.
Using the specific factors model elucidate why you might expect to see certain capital owners and labor groups arguing against expanding trade in a capital abundant country.
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
The difference between the cost to produce the CDs and the price you paid for them spending $30 on two new CDs spending $30 on dinner and a movie with your friends.
Illustrate what would happen to the total employment, the size of the labor force, and the unemployment rate? Show the results graphically.
Compute the gross price paid by consumers after a per-ticket tax of $4. Calculate the after-tax price received by ticket sellers.
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