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the elderly population in the United States is growing more rapidly than the total population. In particular, the number of workers is rising slowly, while the number of retirees is rising quickly. Concerned about the future of Social Security, some members of Congress propose a "freeze" on the program.
a. If total expenditures were frozen, what would happen to benefits per retiree? To tax payments per worker? (Assume that Social Security taxes and receipts are balanced in each year)
b. If benefits per retiree were frozen, what would happen to total expenditures? To tax payments per worker?
c. If tax payments per worker were frozen, what would happen to total expenditures? To benefits per retiree?
d. What do your answers to parts (a), (b), and (c) imply about the difficult decisions faced by policymakers?
To increase marketplace share, Giuseppe would like to raise sales to 750 every week. Elucidate price should Giuseppe set.
Discuss the meaning of the regression coefficient of the independent variable(s) and how it could be used to estimate the elasticities of each of these variables. Discuss how managers use the elasticities measurement to make managerial decisions.
Assume Company X deposits $100,000 in cash in Commercial Bank A. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, Bank A, by itself, can initially increase the money supply by a maximum of
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The inspection equipment has a 6-year useful life and no salvage value. Use a nominal 18% interest rate in your calculations. How much can Robot afford to pay for equipment if the wages and worker benefits were to have been paid monthly?
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What is a government budget deficit. Elucidate how does a federal budget deficit affect the economy.
Whether the government cuts taxes by $200 billion or increases transfer payments by $200 billion, the initial effect on disposable income is the same. By how much does disposable income initially change? If the government cuts taxes, by how much wi..
Enron executives were charged with numerous counts of corporate fraud and corruption. Among the charges was "insider trading", which involves the trading of a corporation's stock by insiders who may have access to information that the public does ..
If the government decides to intervene to return the economy to full employment, elucidate what will happen to the economy in the short run and in the long run.
Some musical groups have become concerned about the high prices that promoters charge for concerts (say $80 on average). So they have mandated that lower prices be charged that are more fair to their fans (say $60). Use the market model.
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