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Detailed Explanation to Fiscal Policy
In the US was in an economic recession, what fiscal policy or policies would be the best to get it out of the recession? Also what would be the best monetary policies or policy for the Federal Reserve Bank to use in this same situation?
The information below explains the real GDP per capita for the country of Utopia for the period of 1975 to 1991.
The impact of changing from a federal income tax to a federal consumption tax would be:
As the economy begins to recover from a recession and more people go back to work.
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
What is the income elasticity? Interpret the elasticity in a mathematic and economic context -- what does this number tell you? Is the own price elasticity consistent with economic principles? Explain.
Give the utility function U(x, y) = (x-4) 1/2 (y-2)- 1/2 , what is the minimum income needed to ensure positive utility?
Assume the airline industry consisted of only 2 firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q) = 40q. Suppose the demand curve for industry is given by P = 100 - Q and that each firm expects the other to ..
Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions. Comment on the significance of time trend and seasonality.
Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change?
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