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Assignment:
In all parts, assume that net taxes (T) are not a function of output (Y).
A. Based on the IS-LM model, when will the rise in government spending (G) surely lead to an increase in consumption (C)? Explain. Your answer should be backed by accurate graphs.
B. Based on the IS-LM model, when will the rise in government spending (G) surely lead to a decrease in consumption (C)? Explain. Your answer should be backed by accurate graphs.
C. Based on the IS-LM model, when will the rise in government spending (G) surely leave consumption (C) unchanged? Explain. Your answer should be hacked by accurate graphs.
D. If the government increases spending (G) and net taxes (T) by the same amount, output (Y) will not change. TruefFalse'? Explain using the right equation(s).
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
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A negative externality created by a producer means that from the standpoint of the public's well being and for the producer and his/her industry in question Even a perfectly competitive market may produce too little of a good
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Propose two separate behaviors other than government purchases that could offset the effects of the military spending reduction on total planned expenditure.
If the labor input is 2 person hours per finished ton of steel, what is the cost to consumers of steel per domestic steel industry job saved by the tariffs?
Suppose there are 100 workers in the labor market who differ in their innate productivity. Worker I has a value of marginal product equal to $1 per hour.
The 2008 fiscal policy package included roughly $100 billion in tax rebates that were mailed to taxpayers. By how much would aggregate demand shift (a)initially and (b) ultimately as a result of these rebates? (Assume MPC is 0.80.)
Create a 15- to- 18-slide presentation. How is motion involved in this formation? Include a description of other bodies directly involved with their formation.
What is the maximum amount of harvest that can be sustainably achieved in this system? What level of biomass generates this amount of harvest?
What factors affect the fuel efficiency of cars? To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers?
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