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Suppose real GDP is $10,000 billion and the basic expenditure multiplier is two. If two tax changes are made at the same time:
a. fixed taxes are raised by $100 billion,
b. the income-tax rate is reduced from 20 percent to 18 percent, will equilibrium GDP on the demand side rise or fall?
If Tarzan also Jane are each nation willing to give-up on hour of patrol for 2 pounds of fruit, is the current allocation of Cheetah's time Pareto efficient.
Compute and contrast at least two two-year forcasts from separate sources for two economic indicator.
Illustrate what are the major macroeconomic goals of all societies.
Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?
Fit each of the following examples into one of the three reasons for trade: I. Division of knowledge II. Economies of scale/creating competition III. Comparative advantage a. It is the 1950s.The American auto industry makes mediocre cars at high p..
Explain how does technology affect an organization's productivity and costs. How has your organization used technology.
If preset prices turn out to be below the equilibrium prices, shortages occur and scalping in legal or illegal secondary markets arises. The prices in the secondary market then rise above the preset prices.
Now the industry is confronted with government regulations to oversee the merger. Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers indicating the most likely impact to p..
A popular magazine reports that wrist watches are becoming the highest fashion craze. What affect will this have on the demand for watches, and what will happen to the price and quantity of watches sold on the market
Explain why you would be more or less willing to buy long-term Air Canada bonds under the following circumstances:
Supply demand analysis to elucidate how the prices of untaxed consumption items can be affected by the retail sales tax even though they are not subject to taxation.
Problem on standard deviation
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