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1) Suppose that, in an effort to try to avoid a recession, the government implements a tax rebate program (effectively cutting taxes for households).
a) What would we expect this to do to aggregate demand? What component of AD (C, I, etc.) would the tax rebate impact most directly? Explain why.
b) Is this an example of the use of fiscal policy or monetary policy?
if demand for a product is inelastic with respect to price this means that people are responsive to the price changes
You invest R2400 annually (at the end of each year) for successive years in a savings account at 15% p.a. (interest is compounded per year). At the end of the fifth year you withdraw R6181.72 and the balance is invested at 10% p.a. for 5 years. What ..
Describe the Quantity of Money theory and identify whether this is a Keynesian or Classical cornerstone. Explain what happens when, based on this theory, the money supply is increased D istinguish the concepts of active and passive stabilization
1.Suppose the equilibrium price in a competitive price taker market is $10 and a firm in the industry charges $9 which of the following is true? a-the firm will not be able to sell any output b-the irm will sell less output than its competitors c-t..
Name the circumstances which indicate an oligopolistic market structure and discuss a real life example of such a market structure. What are the most significant differences between oligopolistic and perfect competition from the consumer's point o..
During the oil crisis in the 1970s, long lines at gas stations disappeared soon after price controls were removed and gas prices were permitted to rise. Should this even be interpreted as evidence that the oil companies have monopoly power
Derive an algebraic expression for the demand for labour, Based on your results, derive an expression for the elasticity of labour demand with respect to the real wage rate.
Describe the core principle of the standard and whether or not you are in agreement with the proposed standard.
zeon a large profitable corportation is considering adding some automatic equipment to its production facilities.an
E-books and the paper book versions of the same books are substitutes. Assume that copyright holders originally demand a higher price for e-books than for paperback books. Then they relent and allow publishers to sell e-books for a lower fee.
A person has an expected utility function of the form U(w)=w^1/2.He has an initial wealth of $25.He also has a lottery ticket that will be worth $75 with probability 1/2 and will be worth $0 with probability 1/2.
Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct and explain how each regulation achieves its objectives and the economic justifi..
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