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Suppose the government provides incentives (e.g. lower company tax) to firms that engage in high levels of research and development.
a How would this affect firms' allocation between different types of investment? Explain.
b How would this affect the interest rate? Explain.
c What happens to the quantity of investment overall? Explain.
d What happens to the short-run aggregate supply curve? Explain.
e What happens to the long-run aggregate supply curve? Explain.
f What happens to the value of the dollar? Explain.
g What happens to the quantity of net exports demanded? Explain.
h What happens to aggregate demand? Explain.
An industry which generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.
Consider an economy that begins with output equal to its natural level. Suppose the economy experiences a negative shock to the banking system. (a) Use the AD-AS and IS-LM models to show the effects of the shock on the AD, AS, IS, and LM curves. Be s..
Why is fiscal policy slow to affect economic growth? Why does monetary work so much quicker to boost the economy than fiscal policy? Why does fiscal policy often contradict monetary policy and often hinders economic growth during recessionary periods..
Only keep the dates beginning in January 2004, so delete the earlier observations, and use the data through September 2021. Keep only the US data, both the seas
Define price elasticity of demand. Let the price elasticity of demand for 'hand sanitizer' is (minus) - 0.20; Is the hand sanitizer elastic / inelastic?
The inverse market demand in a homogeneous product Stackelberg duopoly is. Determine the reaction function for the firm 2 follower. Calculate the equilibrium market price. Calculate the profit each firm earn in equilibrium.
How to calculate the total contributed capital on December 31, 20x3, balance sheet of this corporation?
Which curve shifts, and in what direction, when the following events occur in the domestic car market? a) The U.S. economy falls into a recession. b) U.S. auto workers go on strike. c) Imported cars become more expensive. d) The price of gasoline inc..
Luis wants to have $2,000,000 in net worth when he retires. to achieve this goal, he plans to invest 10,000 each year (starting one year from now) into an account that earns 10% interest compounded annually. The amount of time before Luis can retire ..
Should food and beverage advertising to children be banned? What about for other types of products as well? Is it unethical for food companies to target their ads towards children? In a period when most parents are working, how are children to be pro..
BEO6600 - Business Economics - Victoria University - Describe the market structure and characteristics of the telecommunication industry in Australia.
i) Calculate the price at which you bought the bond and the price at which you sell it if you sold it now
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