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Assume that the Government has announced a cut in Government Spending followed by a tax increase:
Can you establish the macroeconomics effects of these policies on consumption, investment, interest rate and savings? Use the models (consumption model and loanable funds market) and the graphs. Explain
What about the aggregate demand (AD)? Use the Keynesian cross.
Show that if interest rates rise to 10 percent within the next year and your investment horizon is four years from today, you will still earn a 9 percent yield on your investment.
Consider a market for a homogeneous product with demand given by Q=37.5-p/4. a. Suppose that marginal cost for the market equal to 40. Determine the prevailing price, quantity and social welfare (consumer surplus) under perfect competition (efficie..
The best Leisure John may get in a week is 168 hrs. Other than that how many hours a week John works, he gets a $200 allowance from his father.
Using a traditional game theory 2x2 matrix, show how this law prevents a prisoner's dilemma and thereby actually makes models better off. In other words, show what the game theory matrix looks like without this law.
A trader owed £39,175 to fully secured creditors and £205,000 to unsecured creditors. The assets of the business realized £138,600. Express the business assets as a percentage of the liabilities
He lives in the other house and pays $20,000 in dividends per year. If he were to rent the house in which he lives, he could earn $17,000 per year in rent. How much do the housing services provided by these two houses contribute to GDP?
You manage Gofer Delivery Services. You rent a truck for $50 a day and each delivery takes an hour of labor time. The hourly wage is $8. Draw a curve showing the relationship between the number of deliveries on the horizontal axis.
You can use any available on- or off-campus library services for your research. Software that will be helpful in preparing tables, graphs, and charts includes Excel, SPSS, and other similar data-collection software applications.
Discuss how social and cultural norms influence how other nations deal with the issues addressed in US employment laws. Pick 2 of the employment laws discussed in this chapter or covered on the EEOC page.
In the short run attempting to increase consumption beyond the full employment level of income will likely result in
Explain when we look at the macro economy the similar terms are known as Aggregate Demand
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to .075. Assuming that Ricardian equivalence holds true, what is the effect on equilibrium real GDP On saving
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