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Answer the following questions:
a. If the current budget shows a deficit, what would an increase in taxes do to it?
b. What would that increase in taxes do to aggregate demand?
c. When would an increase in taxes be an appropriate contractionary fiscal policy?
a firm produces according to the following production function: Q=k^.5L^.5 where q= units of output, k= units of capital, and L= units of labor. suppose that in the short run k=100. moreover, wage of labor is w=5 and price of the product
If the government takes over a failed bank with liabilities (mostly deposits) of $2 billion, pays off the depositors, and sells the assets for $1.5 billion, where does the missing $500 million come from? Why?
A firm estimates that its total cost function is accurately estimated by the equation TC = 6,000 + 19Q - 5Q^2 + 0.5 Q^3 a. How much is MC at an output of 10 units b. At which output level AVC reaches its minimum
The FCC will also limit the market share of a cable company to 30 percent.
Imagine you are preparing to become a police officer. How does the increased focus on counterterrorism efforts affect your perspective of your future career?
The estimated salvage value was $30,000. At the end of the 5th year the asset was sold for $90,000. From a tax perspective, what is happening at the time of disposal, and what is the dollar amount.
Since Fall of 2011, the price of oil has shown a sharp increase again as continuation steady rise in oil price attributed to the Arab Spring (the political uprising in the Middle Eastern and North African countries) started in the beginning of 201..
a. Solve for the amount imported, consumer surplus, and producer surplus. b. Suppose a per unit tariff of $10 is imposed by the government, solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.
A professor in the economics department of the college of business and economics at CSULA claims that there is much more variability in the final exam scores of students taking the introductory economics courses as a requirement.
How would your answer to part (b) change if only 1 out of 10 used cars was a plum?
Suppose a monopolist has an inverse demand function given by P = 100Q-1/2. What is the monopolist's optimal markup of price above marginal cost?
Suppose you borrow $100 from a bank at 5 percent interest for one year and the inflation rate that year is 10 percent. Was this loan advantageous to you or to the bank?
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