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According to the Keynesian IS-LM model, what is the effect of each of the following onoutput, the real interest rate, employment, and the price level? Distinguish between the short runand the long run. Be sure to express graphically and explain in words.
(a) Increased tax incentives for investment (the tax breaks for investment are offset by lump-sumtax increases that keep total current tax collections unchanged).
(b) Increased tax incentives for saving [as in Part (a), lump-sum tax increases offset the effect ontotal current tax collections].Summer 2015Econ 2102
(c) A wave of investor pessimism about the future profitability of capital investments.(d) An increase in consumer confidence, as consumers expect that their incomes will be higher in the future.
Suppose that an individual allocates his or her entire budget between two goods, food and clothing. Can both goods be inferior? Explain.
Normal 0 false false false EN-US X-NONE X-NONE Suppose a firm's production..
How would your answers to part c above change, if you could still use a TPT strategy but you could not discriminate between the customers?
In each of the following examples, what are the significant differences between government-owned and nongovernment-owned enterprises? Why do you think the government owns the enterprises mentioned?
The balance of payments and how the move internationally may affect the business's reputation as a local small-business owner.
If the country imposes a specific tariff of t = 0.5 per unit of imported X, what are the equalibrium price, quanitity produced domestically, quantity consumed domestically, and quantity imported? e. Who gains and who loses fro the tariff? Does nati..
Determine the maximum number of lbs. of butter the economy can produce and
1. how much would you pay for a perpetual bond that pays an annual coupon of 80 per year and yields on competing
Suppose you own a car wash and that its total cost function is C = 20 + 2Q + .3Q^2 where C = total cost in dollars per hour and Q is the number of cars washsed per hour. You recieve 5 dollars for each car washed.
Describe the model of consumer buyer behavior. Providing a list of the steps or a graphic of the model is not adequate, as you must explain how the process works in the real world using your own words.
If barriers to entry into a profession were absolute so that entry is not possible, what would the supply curve look like? What would the supply curve look like if entry into an occupation were free and easy? Thus, what roles do barriers to entry pla..
Which country has a comparative advantage in producing fish? Explain why. Suppose that trade takes place between Kiribati and Tuvalu. Which good will Kiribati import from Tuvalu? Explain why.
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