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You have a weekend budget of $27 and the prices of movie tickets and gallons of gasoline are $9 and $3, respectively. Draw the budget line for this situation. Gas goes on sale this weekend and changes to $2 per gallon while the price of a movie ticket stays the same. Draw this new budget line on the same graph as the original scenario.
If income changes from $200 billion to $300 billion, and consumption changes from $100 billion to $180 billion, what is the multiplier?
Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. Calculate the accounting profit for Gomez’s pottery firm?
Shift the supply or demand for loanable funds functions to reflect the impact of the shock. Indicate whether the real interest rate and the quantity of loanable funds Rises or Falls. Households become concerned about social security and decide to sav..
if they use a regulation should they allow for pollution permits? explain the benefits and detriments of each form of control. what would you recommend?
Assume straight-line depreciation, a 34% marginal tax rate and a cost of capital of 15%. Should Builtrite D purchase the machine?
Mitchell's income is $150, the price of X is $4, and the price of Y is $2. Given these prices and income, Mitchell buys 20 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 1. Given these prices a..
A large profitable company, in the 40% combined federal/state tax bracket,is considering the purchase of a new piece of equipment that will yield benefits
You are concerned about the damage that automobile pollution is causing our nation’s environment and are interested in the effect that gasoline prices have upon gasoline consumption. Specify your economic model as well as your econometric model of ga..
Explain how and why each of the following factors would influence current aggregate in Canada 1) rapid growth of real income in Japan and Western Europe 2) An increase in income taxes
Suppose a firm purchases labor in a competitive domestic labor market and sells its product in a competitive international product market that covers the whole world. Domestic producers represent a small portion of the world market and have no influe..
Using IS-LM model how was Fiscal Policy and Monetary Policy used during the Crisis to stabilize the economy of (country of your choice)?
Distinguish among microeconomics also macroeconomics also identify some relevant topics to each
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