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Problem 1 The government decreases current taxes, while holding government spending in the present and the future constant. (a) Using diagrams, determine the equilibrium effects on consumption, investment, the real interest rate, aggregate output, employment, and the real wage. What is the multiplier, and how does it differ from the government expenditure multiplier? (b) Now, suppose that there are credit market imperfections in the market for consumer credit, for example due to asymmetric information in the credit market. Repeat part (a), and explain any differences in your answers in parts (a) and (b). Problem 2 Suppose that the unemployment rate is 5%, the total working age population is 100 million, and the number of unemployed is 2.5 million. Determine (a) the participation rate; (b) the labor force; (c) the number of employed workers; (d) the employment/population ratio
What should Zelnick and Conroy do. Should BMG integrate. Should they continue to work with a wide array of technology partners.
Two fi?rms compete in a duopoly market. Each fi?rm chooses a quantity and the price in the market is determined from the following inverse demand function.
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Compute the price and quantity of equilibrium in each country when both country A and country B are closed economies.
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How many acres should John choose to mow in order to maximize profit. Prevailing market price of lawn mowing is $20 per acre.
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If a sample of 110 artists was taken, find the average value above which only 15% would lie. Give your answer in dollars to the nearest dollar.
A consumer buys only two goods, X & Y. a) If the MRS between X and Y is 2 and the marginal utility of X is 20, what is the marginal utility of Y?
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When should this item be reordered. What could be the risk of stockout would result from a decision not to have any safety stock.
Discuss economic forces (supply factors, demand factors, government policy) that affect the health care market.
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