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The following equations are the market demand and supply schedules before the imposition of a per unit tax. (Qd = quantity demanded, Qs = quantity supplied, P = price)
Good X;Qs = P;Qd = 10
Good Y;Qs = P;Qd = 10 – P
Assume there is an imposition of a $2 per unit tax on producers. Graph the supply and demand curves before and after the tax, for each good. On each graph, shade in the tax incidence for producers and consumers.
What is the difference between contractionary and expansionary monetary policy? What is the intention of each policy under a depression, recession, or robust economy? Which type of monetary policy is more appropriate today and why?
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Consider the simple model of goods/services market (with government and foreign trade AE=C+I+G+Xn) and the money market (Dm-Sm). Suppose the following policy mix is carried out: What would be the effect of lower required reserve ratio on the money ma..
The scale effect is
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Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information; M=4000, Px=800, and Py=100, What is the ..
Discuss the current state of the Chilean economy by focusing on the recent past and macroeconomic characteristics
Suppose Mary has an income of $80 to buy bags and belts. The price of a belt (good 1) is $10 and the price of a bag (good 2) is $20. Derive the intercept-slope equation of Mary’s budget line. Graph her budget line. As always, label the axes and ident..
In a zero-sum game
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