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1. Explain how built-in (or automatic) stabilizers work. What are the differences between proportional, progressive, and regressive tax systems as they relate to an economy's built-in stability?
2. Define the standardized budget, explain its significance, and state why it may differ from the actual budget. Suppose the full-employment, noninflationary level of real output is GDP 3 (not GDP2) in the economy depicted in Figure 30.3. If the economy is operating at GDP 2, instead of GDP 3, what is the status of its standardized budget? The status of its current fiscal policy? What change in fiscal policy would you recommend? How would you accomplish that in terms of the G and T lines in the figure?
recently the owner of a trader joes franchise decided to change how she compensated her top manager. last year she paid
What are the comparative risk considerations between the two?
factory 2 has a marginal cost function given by MC2 = 0:5q2 5, how much total output will the company choose to produce and how will it distribute this production between its two factories in order to maximize profits
What is each orchard's labor demand as a function of the daily wage W? What is the market's labor demand?b. Ectenia has 200 workers who supply their labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit..
Construct a table to report the regressions above, which includes the estimates, the standard errors, and adjusted R-square and find the estimated coefficient of ln(Y earsSchool) in Regression B. What is the interpretation of it?
What is the opportunity cost of bicycles in terms of snowboards at Home? What is the opportunity cost of bicycles in terms of snowboards in Foreign?
Kal Tech Engineering is investigating the possibility of acquiring new automated packaging equipment at a cost of $12,000. The equipment will have a salvage value of $1,000 at the end of its useful life of 10 years. It is determined by the plant e..
Consider the previous exercise and now suppose both types of residents can migrate to the other district.
Moving along the demand curve, quantity demanded decreases 8 percent when price increases 10 percent .a. The price elasticity of demand is calculated to be. b. Given the price elasticity calculated in part a, demand is (elastic, inelastic, unitary e..
Many retirement funds charge and administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $5,000 in the same stock this year. Alexx invests directly and earns 5% a year. Spenser uses a retirement fund and ear..
You are the city engineer and are negotioating with a land developer. The developer wants water service to a new development and you report that service can be completed this year by city crews at a cost of $200,000
Due to a manufacturing error, a parasitic resistance Rp has appeared in series with the source of M1 in Fig. 11.65. Assuming λ = 0 and neglecting other capacitances, determine the input and output poles of the circuit.
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