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Suppose Congress decides to reduce transfer payments (such as welfare) but to increase government purchases of goods and services by an equal amount. That is, it undertakes a change in fiscal policy such that ?G -?TR.
a. Would you expect equilibrium income to rise or fall as a result of this change? Why? Check your answer with the following example: Suppose that, initially, c .8, t .25, and Y0 600. Now let ? 10 and ?TR 10.
b. Find the change in equilibrium income, ?Y0 .
c. What is the change in the budget surplus, ?BS ? Why has BS changed? Empir
Suppose the stock of capital and the workforce are both increasing at 3 percent annually in the country of Wholand. At the same time, real output is growing at 6 percent. How is that possible in the short run and in the long run
A major pension fund is interested in purchasing Barrett's stock. The pension fund manager has estimated Barrett's free cash flows for the next four years as follows: $3 million, $6 million, $10 million, and $15 million.
The following hypotheses are given. H0 : 0.71 H1 : > 0.71 A sample of 100 observations revealed that p=0.85. At the 0.02 significance level, can the null hypothesis be rejected (a) State the decision rule. (Round your answer to 2 decimal places.)
You just inherited $10,000. while you plan to squander some of it away, how much should you deposit in an account earning 5% interest per year if you'd like to have $10,000 in the account in 10 years
A large profitable corporation is considering two mutually exclusive capital investments: Alt A. Initial Cost: 11,000Uniform Annual Benefit: 3,000 End of depreciable life salvage value: 2,000 Depreciation method: SL End of useful life salvage value
What would be banks' options to come up with the "cash"?
You run a chain of movie theaters, so you commission a marketing study that categorizes your potential customers into 10 equal-sized groups according to what they're willing to pay for a movie ($10,$9,$8,$7,$6,$5,$4,$3,$2,$1).
What is the long-run cost and long-run average to produce 120 units 180 units 240 units are there economies the output range 120 to 180 are there diseconomies between 180 and 240 Q L K 120 4 20 180 6 ..
A manager can use either way S or B to prepare packages of chiken nuggetes, The firms production is givin as Q= B+S. A- Graph the isoquant corresponding to 4 unites of output. B- What is the marginal product of capital and labor.
think of one situation in which the Government is actively involved with the purpose of changing an outcome in the appropriate market. Do you agree that the Government should be involved? Why or why not?
the following table gives the joint probability distribution between employment status and college graduation among
Two girder designs are under consideration for a bridge for a 1,200-foot crossing. The first is expected to result in a superstructure weight per foot of 22(S) + 800, where S is the span between piers. The second should result in superstructure we..
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