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Why tax multiplier is smaller than the multiplier for the same amount of government spending? Please explain with the following data: $1 million tax cuts, $1 million increase in government spending, MPC=0.75.
If Englad can produce either 15 units of corn or 30 sweaters in one unit of labor and Portugal can produce 10 units of corn and 5 sweater in one unit of labor as well, explain how would each nation benefit (numerically) from trade.
A industry is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70. What would you advise this firm to do.
What level of output should you produce in the short run?b. What price should you charge in the short run?
The VIU has convinced the public utility commission (PUC) that it is a natural monopoly and thus it has been granted an exclusive franchise to produce electricity. What is the competitive equilibrium in the absence of rate of return regulation? What ..
Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism abou..
The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB). What were those actions? Why did the ECB take those actions?
q.suppose you go to buy a gm car. the car is priced at 24000. the salesperson offers you financing along free interest
You learned that Texas has a tax system that is generally “regressive” because it relies heavily on sales taxes rather than income taxes. What are the definitions of regressive, flat, and progressive when it comes to taxes? Why a sales tax is conside..
q1. mark consumes only cookies and books. at his current consumption bundle his marginal utility from books is 10 and
Use the green line (triangle symbols) to show the impact of this additional change in the exchange rate on the economy.
Which of following is equivalent to marginal propensity to consume. If incomes increased by $20,000, government purchases are fixed at $10,000, investment spending is fixed.
Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.
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