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Assignment:
Canada is a closed economy and is in its long-run equilibrium initially. The contribution limit of Tax- Free Savings Account (TFSA) has been increased to $7000 in 2024.
a) In the context of the long-run classical model, examine the effects of the above event on the following variables in the long run: output real interest rate national savings real wage aggregate price level Explain your answer with the aids of ONE diagram for the market of loanable funds and ONE diagram for the labour market.
b) Based on your answer in part (a), what happens to the level of output in the steady state (i.e., the very long run)?
Assume we have two identical houses. Each house is a 3 bedroom, 3 bath, 2000 square feetwhite house on a 1 acre lot and both were built in 1996.
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Sue is going to hire her friend Kristen to help, who can bottle and sell 3 cases a week. What is the maximum total output of sue hires Kristen?
in class we covered the concepts of producers and consumers surplus.a. with respect to different government policies
if a firm has monopoly power in the market for its output the marginal revenue product of labor a. is no different than for a competitive firm b. is less for each unit of labor than for a competitive firm c. continuously slopes upward instead of turn..
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Illustrate graphically the monopolist's profit maximization problem. Include the monopolist's profit-maximizing price and level of output, any consumer surplus.
When Mark and Valerie Bowman first saw the house, they didn't like it. However, it was a dark, rainy day. They viewed the house more favorably on their second.
Explain the difference between accounting profit, and economic profit. Why are economists more concerned with economic profit
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