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The Australian Government introduced the Job Keeper Payment to help Australian low-income workers in jobs and support businesses affected by the significant economic impact of the COVID-19 pandemic. This payment has an implication for the Australian government's expenditure. Suppose we have the following information for our economy, all amounts are in millions of dollars. C = 800 + 0.8 Yd T0 =400 I0 = 600 G = 1,000 Yfe = 15,000 What is the current equilibrium level of income in this economy? Calculate the size of the output gap. Draw an AE diagram illustrating the current economic situation Suppose the government wants to close the output gap by changing government spending (via Job Keepers Payment). How much does government spending need to increase/decrease for the economy to achieve full employment? Now, suppose the government decides to close the output gap by changing taxes. By how much do taxes need to increase/decrease for the economy to achieve full employment?
Compute the consumer surplus, producer surplus, DWL, and profits for the monopolist. Will the University continue to sell Badger Soccer tickets in the long run
Mr. Paul is consuming products X and Y optimally and deriving total utility of 10 utiles. when his budget is increased from K80 to k81, his utility increases.
For the next 3 questions, assume that there is a $8 per unit excise tax levied on the consumers of the product. C) What price will buyers pay after the tax is imposed D) What is the deadweight loss created by the tax E) What is the quantity of the go..
Suppose that a student who is about to take a multiple choice test has only learned 40% of the material covered by the exam.Thus, there is a 40% chance that shewill know the answer to a question. However, even if she does not know the answer to a ..
In the UK, the rise of the discount supermarket Aldi has attracted more customers, sales and market share in recent years, and is seen as a major disrupting
List determinants of elasticity, and explain each determinant in details using examples discussed in class.
pollution is considered by most a negative externality. some economists would like to see the costs of these burdens
Go to the Bureau of Economic Analysis on the Department of Commerce's Web site, and look up the latest new release for real GDP. Where are we in the business cycle What is the real GDP today What is the nominal GDP todayWhat is the difference between..
What are some of the possible policy actions to address this problem, if there is any problem ahead?
Explain, in words only, why autonomous investment increases.? will it result an increase or decrease in private savings?
Networks are subject to negative externalities. How might such externalities affect a network carrier’s decision to add another spoke city to its network? Describe. (You might wish to use marginal benefit/cost analysis)
Determine the profit-maximizing average daily production capacity for DermaPlus for each of the possible reference-based prices identified by the consultant. Estimate the expected daily profit in each case.
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