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Suppose the market for healthcare services conformed to the model of perfect competition presented in class, as represented in the figures below. If the government levied a $10 tax on providers for each service they provided, how would the market price and quantity of services be affected? How would allocative and technical efficiency be affected? Explain.
Consumption is $6 trillion, investment is $2 trillion and government purchases are $2.5 trillion. The country exports $1 trillion and imports $1.5 trillion. Find net exports and solve for the level of aggregate demand.
Cater enterprises can issue floating-rate debt at LIBOR + 2.50% or fixed rate debt at 9.50%. Brence Manufacturing can issue floating-rate debt at LIBOR + 4.60% or fixed rate debt at 11.00%. Suppose Cater issues floating-rate debt and Brence issues fi..
q1. do you believe economic darwinism is reflected in the us banking policy of some banks are too big to fail
The slope of the total product (output) curve is the
A group of investors has formed Trump Corporation to purchase a small hotel. The price is $150,000 for the land and $850,000 for the hotel building. If the purchase takes place in June, compute the MACRS depreciation for the first three calendar year..
You were told that a certain cash flow sequence started at $3000 in year 1 and increased by $2000 each year. How many years were required for the equivalent amount worth of sequence to be $12000 at an interest rate of 10% per year? You were told that..
Suppose two countries, A and B, with the same production function Y = K? L1?? . The value of is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Show that with price-taking firms the share of labor must be 1? Compare both e..
Resource price differentials that do not trigger the reallocation of resources are known as
If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent..
Briefly define each of the following terms or phrases and briefly explain why it matters for tax policy.
Let customer's tastes change so that consumers now demand 100 more units at each price. When the cost of the good is $50, elucidate how many units of the good are demanded?
Automatic stabilizers
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