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Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced. This would Answer shift the average fixed cost curve down. shift the marginal cost curve up. shift the average fixed cost curve up. shift the marginal cost curve down.
Explain how are the Bank of Canada's transactions in the foreign exchange market from part (a) reflected in the balance of payments account.
Find the new equilibrium real interest rate and the corresponding levels of consumption, investment, national saving, private saving, and government saving. Find the equilibrium real interest rate r . Find the equilibrium levels of consumption, in..
Assume that initially the goods and services market is in equilibrium at potential of output and that the government budget is balanced,
Compute the employment rate (i.e., number employed: population) in each year? How can employment rate may go up or down in the unemployment rate stays the same? How can employment rate go up if unemployment rate also goes up?
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Fewer potatoes are demanded when the price of rice has fallen from $ 0.25 to $0.10 cents per pound-The Molly Jock wants to buy a high definition television to watch the Olympic Greco roman wrestling competition in Beijing.
Any change in the economy's total expenditures would be expected to translate into a change in GDP that was larger than the initial change in spending. This phenomenon is known as the multiplier effect. Explain how the multiplier effect works. (c..
Describe free trade harm the environment. Environmentalists argue that trade liberalization harms the environment.
Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about.
Understanding the International Macroeconomy, According to the Solow growth model, there are two reasons why an increase in total factor productivity leads to an increase in output. What are those two reasons?
Discuss at least 3 reasons why and how workers become unemployed (be specific about causes), and also cite 3 reasons unemployed workers finally land new jobs or get rehired.
Assume that the initially equilibrium was 200 units and that this was also full employment level of income. Suppose that the consumption is C = 25 + 0.8YD,
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