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Case: Graph short-run models and consumption behavior to compare the effects of the two following fiscal policies on short-run output, interest rates, and inflation. Government expenditures do not change.
Question 1: Policy 1: Income taxes are reduced by cutting tax rates for top brackets. The 20% of households withhighest incomes realize a benefit. Decide how this policy should affect aggregate demand and explain your reasoning. What role does the permanent income model play in your explanation?
Question 2: Policy 2: Taxes are reduced for low income households by increasing earned income credits and child tax credits. Decide how this policy should affect aggregate demand and explain your reasoning. Do borrowing constraints play a role in your explanation?
Question 3: Use the short-run model to compare or contrast the effect of these different policies on output, interest rates, and inflation. Do they affect the government deficit similarly?
A lot containing 7 components is sampled by a quality inspector. The lot contains 4 good components and 3 defective components. Find the expected value of the number of good components in this sample.
Determine the rate at which Mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output. To minimize costs Mitsubishi should hire capital and labor until the marginal rate of technical substitution reache..
Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to..
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Based to the News, how much more did the average household spend on appliances, electronics, and furniture when it received the 2008 tax rebate?
Stones for the pyramids were quarried far to the south (upstream on the Nile River) and were brought downstream on rafts only during the spring flood of the Nile. Discuss some of the planning and organizational implications of this immense logisti..
What do you predict will happen to the foreign exchange rate if interest rates in the United States increase more than in the UK? (In other words, which currency will become stronger?) How would such a change affect US exports to the UK
Find the angular velocity of the CD in radians per minute, and the linear speed of a point on the edge of the CD in miles per hour, rounded to the nearest tenth of a mile.
PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly. how much is surplus is lost (deadweight loss) when there is a monopoly
Discuss how government policies can influence economic growth. Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.
Assess the efficiency of the types of economic incentives available to providers in the delivery of health care services in your own state.
Assume you are an economic consultant for a big company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities.
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