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Suppose that the real interest rate in an economy is 6%. Real GDP grows by 2.75% a year. The new chief economic adviser to the government argues that a tax increase of $20 billion will generate huge bene?ts because the real interest rate is much larger than the growth of GDP, so that tax rates will be lower on future generations forever. What is wrong with this argument?
The economy has 100,000 adults , 10,000 are full time students and 20,000 are retired, the rest are either working or looking for work,and of those 7,000 are looking for work. How big is the labor farce/ what is the labor forc participation rate.
Are DSM programs substitutes for peak-load pricing? Under what circumstances are DSM programs socially inefficient? Efficient?
1. Brief Introduction 2. Phases of BEE 3. What Problems is BEE Intended to Solve?
Discuss the changing economic variables in China that influenced McDonald's expansion strategies.
If the velocity of circulation is growing at one percent a year, the real interest rate is two percent a year, the nominal interest rate is seven percent a year, and the growth rate of real GDP is three percent a year, calculate the inflation rate..
Illustrate what are some of the traditional international trade theories that support the concept of globalization.
We assume there are no lump-sum taxes and no dividend income: ? = T = 0. We assume h = 1 and the wage rate w = 1. There is a consumption tax such that for each purchased unit of consumption, the consumer needs to pay 1 +t units where t goes to the..
Formualte the problem as a linear progarm and determine the weekly production schedule.
Waters' Edge is a clothing retailer that promotes its products via catalog and accepts customer orders by all of the conventional ways including the Internet. The company has gained a competitive advantage by collecting data about its operations a..
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
These costs are depends on a budgeted volume of 80000 units developed and sold every year. Lafluer uses cost-plus pricing methods to set its target selling price.
Most customer oppose these laws because they find Sunday afternoon a good time to shop, however retail trade associations support these laws.
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