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Q1. Assume the government decides to fight obesity in America by imposing an excise tax on the saturated fat content of food. The effect of this tax would be to
Q2. Consider a simple Keynesian income-spending model of an economy described by the following equations
C = 210 + 0.75YdI= 300G= 425TR= 120T= 100M = 0.15YX= 220
(a) Compute the equilibrium level of income. Sketch this equilibrium position using a two-dimensional graph.
(b) Assume the government reduces public expenditure by 50. Estimate the change in the equilibrium level of income? Illustrate what is the new equilibrium level of income?
Elucidate how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.
1. contrast the ideas of nominal gdp also real gdp. explain why there is one more reliable than the other for comparing
What are the conditions for the four types of markets (perfectly competitive, monopolistic, monopolistic competitive and oligopolistic market)?
illustrate what is the profit maximizing quantity that should be offered to Group B
Construct a choice table for interest rates from 0% to 100%. If the MARR is 10%, which alternative should be selected? Can you please explain how to solve the problem on excel
the quantity supplied of the Real GDP in the long run is $4.3 trillion. Evalute is the economy in short run equuilibrium. Will the price in long run equilibrium be greater than, of less than, or equal to 132.
Extend this comparison by choosing a different point on this period's PPF and discuss whether that combination leads to more or less growth over the next period.
You have an income of $40 to spend on two commodities. Commodity 1 costs $10 per unit, and commodity 2 costs $5 per unit, illustrate what is the budget equation.
Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.
In order to just break even, Elucidate how much will the company have to charge for every set.
Find ticket price that maximizes revenue. Find profit-maximizing expenditure on players and profit-maximizing fraction of games to win.
Elucidate why labour force participation rate for two groups might differ. Why might human capital choices differ between selected groups.
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