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Suppose that government spending makes private Örms more productive; for example, government spending on roads and bridges lowers the transportation costs. This means that there are now two effects of government spending, the Örst being the usual effect of G we discussed in class and the second being similar to an increase in the nationís capital stock K.
(a) Show that an increase in G that is productive in this fashion could increase the welfare of the representative consumer.
(b) Show that the equilibrium effects on consumption and hours worked of and increase in G of this type are ambiguous but that output increases.
illustrate what is the largest cardholder fee that Tuan will pay. the long run a perfectly competitive firm experiences economic profit and new firms will enter the market.
Converse alternatives to GDP as a measure of economic benefits in a current economy.
No less than 1000 words (excluding the title page, bibliography and appendices). Question 1. A Study into the Key Principles of Economics.
Discuss the Federal Reserve's assessment of the current economic activity and financial markets. Elucidate the Federal Reserve's current view about inflation.
Elucidate how much will the government spend in total. Elucidate how much does producer surplus increase.
Depend on this information, which market structure best characterizes the industry in which Forey competes.
Elucidate what will happen to the equilibrium price and quantity of pizzas sold and why (which curve has changed) for each of the following situations:
What are the price-quantity effects of this tariff on domestic consumers, domestic producers and foreign exporters. Explain how would the effect of a quota that creates the same amount of imports differ.
What are the two characteristics of public goods. Is U.S. border control a public good or a private good.
Suppose that the government is debating whether to spend $100 billion today to address climate change.
If you were in this industry also there was an increased demand for the product which pushed up the price of goods
List several ways that people and businesses in the green movement are participating.
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