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Suppose a government moves to reduce a budget deficit. Using the model developed in class: a) Graphically illustrate the impact of reducing the government’s budget deficit by increasing (lumpsum) taxes on household income. Be sure to label: i. the axes; ii. The curves; iii. The initial equilibrium values; iv. The direction the curves shift; v. the terminal equilibrium values. b) State in words what happens to: i. The real interest rate ii. National saving iii. Investment iv. Consumption v. Output
______ signals that a downturn is coming, and is a condition to be expected at the peak of the business cycle.
If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate delivery increases
How would equal educational achievement and equal income.
Decide whether each scenario would lead to upward or downward pressure on the equilibrium price for each good in bold font.
Include the circumstances of the proposed monopoly and the reason the government stepped in. Predict what would have occurred had the monopoly succeeded.
Use a short-run Phillips curve to Explicate why the inflation rate may decrease over the course of 2009. Under Illustrate what circumstances might the inflation rate not decrease during 2009.
Explain fully how a tax or subsidy affects the market. Explain how higher taxes do not necessarily raise more revenue as demonstrated by the Laffer curve.
If your rival advertises and you do not, you will make $1 million and your rival will make $3 million. Does rival have a dominant strategy. What is Nash equilibrium for one-shot game.
Assumptions make the nation easier to understand because they simplify reality and focus our attention.
Which of the following statements are true about both monopolistic competition and monopolies?
Explain how can multiplier have a -ve effect. What is the relationship among the multiplier as well as the marginal propensities.
When Alex's income was $3000, he bought 4 bagels and 12 donuts a month. Now hus income is $5000 and he buys 8 bagels and 6 donuts a month. Calculate Alex's income elasticity of demand for a. Bagel b. Donuts
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