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Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian income-expenditure model. In your answer, carefully show the new equilibrium and explain the adjustment to the new equilibrium.
Proponents of a Basic Income (or Negative Income Tax) argue that it is a superior method of addressing income inequality than the Minimum Wage. discuss how, in a parallel universe with NO minimum wage but a Basic Income of approximately 2/3 of minimu..
Explain why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run.
Given: CPI in 2006 = 160.0; CPI in 2007 = 170.5; CPI in 2008 = 172.4; CPI in 2009 = 168.2.l Compute the inflation rate in 2007, in 2008, and in 2009. Based on the given data and your computations above, in which year did disinflation occur?
The central bank plays major role in the economy. Briefly outline the various functions of the central bank in an economy.
State differences between the null and alternative hypotheses, and rejection rules, using p-values, with respect to those associated with the coefficients
If the price of motel room increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel room has?
Explain briefly the ethical situation. What are the all the different actions you could have taken. What are the consequences of each of these actions.
The expiration of the FICA payroll tax cut of January 1, 2013, raised taxes by $110 billion per year.Assume a marginal propensity to save (MPS) of 0.20.
Phil has two periods of work remaining prior to retirement. Assume that Phil maximizes the present value of his expected lifetime earnings and his discount rate is 10 percent. He is currently employed in a firm that pays him the value of his marginal..
Explain what kind of partnership would you implement to promote sustainable economic growth and which goal(s) will impact.
Suppose that disposable income, consumption, and saving in some country are $400 billion, $350 billion, and $50 billion, respectively. Next, assume that disposable income increases by $40 billion, consumption rises by $32 billion, and saving goes up ..
What is the role of government in dealing with benefit externalities? With cost externalities? (p. 555 #3)
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