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Many states provide firms with an investment tax credit that effectively reduces the price of capital. In theory these credits are designed to stimulate new investment and thus create jobs. Critics have argued that if there are strong factor substitution effects, these subsides can reduce employment in the state. Explain their argument
Assume a indiidual has $8 to spend only on apples and bananas.
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Elucidate social media have a place in the business nation. How would you use social media to promote your business.
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
Assume that the price elasticity of demand for good. Describe how much consumption changes.
Assume if the objective is to increase total income, should the price be increased or decreased. Explain.
Express how long would it take for the price level to double if inflation persisted.
You are a budget analyst in a California State legislative budget committee and have been asked to prepare a policy brief on the budget issue for the state.
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Explain why may a government solution to a marketplace failure worsen the market failure.
Illustrtyae what policies we should follow in resource allocation for health.
Illustrate what policy actions have the Federal Reserve taken to confirm that direction.
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