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Q1. Assume the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. Explain how will this combined tax-transfer policy affect aggregate
If the AD shortfall is $800 billion also the MPC is 0.8,
(a) Explain how large is the desired fiscal stimulus?
(b) Explain how large an income tax cut is needed?
(c) Alternatively, Explain how much more government spending would achieve the target?
Q2. A new law requires that all construction workers in your area belong to a labor union. Will this shift the labor supply curve, demand curve if both in home construction? Explain how will this affect wages also number of workers in h1 construction?
Describe the determinants of varying levels of income. What factors determine a wages of a person
Decide to conduct a SWOT analysis to evaluate the value and risks. Provide a SWOT analysis and briefly discuss each factor.
What happens to the profits of boat makers in the short run. What happens to the number of boat makers in the long run.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
When Betsy goes to make her list for tomorrow she is upset that she didn't get everything done. In a well-written paragraph explain the economics behind her inability.
Describe, using complete sentences, at least three specific features which your ideal bank would provide to you.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
Derive Chenyu's consumption function in terms of her annual income Y and initial wealth W according to the life-cycle model.
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
what is the short run equilibrium level of output in this economy.
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