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Problem: Begin with an economy in equilibrium. What will happen to real interest rates if taxes on capital and bequests simultaneously increase? Assume that the impact of the tax on capital is larger than the impact of the tax on bequests.
A) Derive the equation for the IS curve, Y=k*Ap. GRaph for interest rates 0 & 8, with intervals of one-half of a percentage point. B) Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which t..
The Ice cream Parlor is the only ice cream parlor in Smithtown. Michael, the son of the owner, has just come back from college, where he majors in business administration. In his course in managerial economics, Michael has just studied demand anal..
A price-discriminating monopolist of the 3 rd degree sells output in 3 different markets. Some, but not all pairs on the 3 linear market demand curves are given below.
Macropoland has a natural rate of unemployment at about 4.5% and its long run average of inflation over time has been about 2%. This means that no matter what happens in the short-run, the long-run averages of unemployment and inflation will always b..
Check out the short video at forbes .com called "Behind Rising Oil Prices," from 2008. (Search online for "behind rising oil prices forbes video.")
You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis that includes the following:
The law of demand state that_ the _the price of a good, the smaller is the quantity demanded;and the _the price of a good, the greater is the quantity demanded.
Discuss wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor.
If asked to provide your professonal opinion on a company's ability to maintain operations and its solvency into the future, what questions might you ask, what ratios might you calculate, and what analysis might you conduct to support your opinion
Suppose a firms production function is given by Q= L^1/2 * K^1/2. The marginal product of labor and the marginal product of capital are given by:
define the union wage gain and the union wage gap. why should we care about the magnitude of the union wage gain? why
How do you remember order of operations? If you use a calculator for computation, is order of operations still important? Why or why not? What are some of the possible outcomes when order of operations is ignored?
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