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Q. What are your predictions for the economy of Thrifty peg based on the following policy scenario:1. Suppose the government decides to increase taxes. What happens to total output, disposable income, consumption, public saving, private saving, and national saving? (1) Assume Ricardian Equivalence does not hold,(2) Assume households consume a constant fraction (MPC) of current income in current period where MPC is defined as the marginal propensity to consume out of income and is between 0 and 1.
2. Output, total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions?Average labor productivity = output ÷total hours worked, so that the percentage change in average labor productivity equals the percentage change in output minus the percentage change in total hours worked.
A Business Week table ("The High Price of Admission," October 23, 2006, 60) compares various business schools by calculating how long it takes to break even on a student's investment in a Masters of Business Administration (MBA)
Supposes airline industry consisted of only two firms: American and Texas Air Corp. Let two firms have identical cost function, C(q) = 40q. Assume that demand curve for industry is given by P=100-Q and that each firm expects or to behave as a Cou..
Are the assumptions the same as under a simple linear regression. What does TSLS imply about the data if a strong F is found.
Assess the value of healthcare professionals and decision makers understanding the discipline of health economics. Defend or critique the importance of considering the complex nature of health and healthcare when examining the economic principles rel..
Compute the price elasticity of demand for subway rides. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
Illustrate what should be the production level if fixed costs rose to $50,000 per month. Explain.
Why does hedging usually take place with a forward contract.
Explain how is the federal budget deficit affecting the U.S. economy. Essay should be about 400 words. How dependent is American, on the Chinese economy.
The Texas Transportation Institute at Texas A&M University conducted a survey to determine the number of hours per year drivers waste sitting in traffic.
Use indifference analysis to demonstrate the income, substitution also the total effects if good X is a non-Griffin inferior one.
The terms of the loan are not renegotiated, so the borrower has a guaranteed nominal interest rate of 10%. What is the expected real interest rate for this loan?
Explain why is presidential power "conditional" - that is, why is affected so substantially by circumstances, the makeup of congress, and popular support.
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