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Suppose a closed economy decides to lower taxes (assume Ricardian equivalence does not hold), all else held constant. What will happen to savings, investment, and the interest rate? Show graphically what happens (be sure to label curves, axes, equilibrium, and clearly show the direction of shifts).
Explain what the lock-in effect is for capital gains that are taxed on realization. How can the effect lead to inefficient allocation of capital? b. Explain what a Roth I.R.A. is and show how its availability affects a competitive consumer's budget s..
Demand for a certain for item is given q=200-2p. Where q donated amt and p is price per unit. It cost Rs 5 to produce each unit. What is profit function of firm for this item.
the assignment is to determine the same information on the demand for gasoline tab using the information in the example
Annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption, investment, government spending, exports and imports. Estimate changes in economic growth and in the component shares.
the world price of coffee rose about 100%. What was the approximate price elasticity of demand for coffee? was the demand elastic or inelastic?
Describe the goals of the factory owners? Describe the goals of the employees? Describe the problem caused by the scarcity. What is the price of a life.
Suppose that both countries are currently producing three pairs of boots and three shirts. Elucidate that both can be better off if they each specialize in producing one good and then engage in trade.
Could the Board of Governors done anything different? Has the Fed's policies been counter cyclical? Present the views of whether or not monetary policy is working now?
Explain why capital flows cause imbalances in the current account. Post to the discussion board your 200 word answer focusing on selecting and organizing your most relevant comments in a coherent fashion.
Describe the difference in economic profit between a competitive and a monopolistic in both the short and long run. Which should take longer to reach the long-run equilibrium?
Be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives
q.q1. consider two persons ann and bill and two-goodsx and y exchange economy. the total endowment of the economy is
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