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Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP). She wants to know what policy to pursue to increase RGDP by $2 trillion ($2,000 billion). The best estimate she gave you is the value of MPC = 0.8. Which of the following policies should you recommend and why? You need to show your work of estimations and explain in words.
a. Increase government expenditure (G) by $400 billion
b. Reduce taxes by $400 billion
c. Reduce taxes by $400 billion and increase govt. expenses by $200 billion
d. Increase G by $500 billion
Write down an expression π(q ) for profits as a function of q. Find profit-maximizing choice of q for Smith and corresponding price and profit.
To introduce GNP and GDP, and other concepts of the National Income accounts, and to show how they help us understand the growth of the U.S. economy over the past century.
The most likely reason that oil prices spiked during 2007-2008 was because
q1. liliana sells dvds. it costs her 40 an hour to keep the store opem 500 for monthly rent and 3 an hour for
which revealed that the buyers were, on average, willing to pay a premium of $295 for an IBM computer.
Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. Illustrate what happens to the market-clearing real interest rate.
Neglect other concerns, like closing costs, capital gains, and tax consequences of owning, and determine whether it is better to rent or own.
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
Assume there are no other countries willing to trade goods, so when there is no trade between these two countries, each country consumes the amount of wheat and clothing it produces.
Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences managerial decisions. Be sure to show the calculations that helped you reach your conclusions.
Briefly define the term or phrase and explain why it is important to (Canadian) Tax Policy.
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
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