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If the actual budget deficit is $100 billion, the economy is operating $250 billion above its potential, and the marginal tax rate is 20 percent, what are the structural deficit and the cyclical deficit?
Suppose that in the United States corn production uses land and labor, while beer production uses capital and labor. Labor is mobile between the corn and beer industries, while land is specific to the corn industry and capital is specific to the beer..
Assume ESPN introduces a new performance comparison system for NBA players (basketball), i.e. preference relation for ranking players as strictly better, weakly better or indifferent (equally good). ESPN’s new criterion (the preference relation) is d..
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $54,000 to $66,000. What is the marginal revenue product of ..
The supply of a good declines (shifts left). Will total revenue after the decline in supply be greater than, less than, or equal to total revenue before the decline in supply? Explain your answer. Shift left of the supply curve against a fixed demand..
Phil the Pharmacist currently is working for the Gregory Pharmacy Company earning $40,000 in salary per year. He works 6 days per week and travels one hour in each direction to and from work each day. Phil values his own time at $9.00 per hour. For t..
a) What are the potential benefits and potential costs for this country of opening up to trade? b) If you observed this country initially experience current account deficits and capital account surpluses when it opened up to trade, would you be su..
Collapse What are the ethical implications of federal minimum wage? Who does it help and who does it harm? Does raising the current level of the minimum wage increase unemployment, drive business away, or harm the very poor? Will a higher minimum wag..
Illustrate what will be the level of output and price in the long run if this industry were perfectly competitive.
What is Country A's balance of: {Export of Services - Imports of Services +Income Receipts - Income Payments + Net Gifts?}
What are your opportunity costs of water and dates? What are Mohammed’s opportunity costs of water and dates?Who has an absolute advantage in dates and water production and who has a comparative advantage in dates and water production? How many dates..
If the college charges all students the same tuition, illustrate what tuition can it charge to cover all of its costs.
Given the following information for November 2010, calculate the amounts of M1 and M2 in November 2010. The amounts are in billions of dollars. Demand deposits, Money market mutual funds, Savings deposits, including money market deposit accounts
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