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Why does the way government achieves deficit reduction make a difference for economic growth?
a Assuming that the government raises taxes on interest income, what is the total impact on national savings, taking into account both deficit reduction and changes in private savings? What is the impact on investment?
b Assuming that the government raises taxes on wage income, what is the impact on GDP in the short run?What is the impact on the deficit and on investment?
c Assume that the government reduces expenditures on investments in technology and education, which yield a return of 15 percent, while the marginal return on private investment is 7 percent. What is the impact on growth?
Your answer should demonstrate that the prices that are used to calculate real GDP do affect the calculated growth rate, but typically not by very much.
Spenser's Superior Stoves advertises a one-day sale on electric stoves. The ad specifies that no phone orders are accepted and that the purchaser must transport the stove. Why does the firm include these restrictions?
Should a social planner be concerned with the distribution of income or the distribution of utility? How does the answer relate to needs and abilities?
Calculate the Average Propensity to Consume for two households
If real GDP per person in Mexico grows at the rate of 5 percent per year, about how long will it take Mexico's real GDP per person to reach the level that the United States was at in 2005?
a. If these products are sold in the ratio of 4A for 3B, what is the break-even point b. If the product mix has changed to 5A for 5B, what would happen to break-even point c. In order to maximize the profit, which product mix should be pushed
What circumstances lead to adding an explanatory paragraph? What does this paragraph entail?
An amusement park, whose customer set is made up of two markets, adults and children, can be expressed in equation form as follows (where subscript A refers to the adult market, subscript C to the market for children
Assume that GDP is $6,000, personal disposable income is $5,100, and the government budget deficit is $200. Consumption is $3,800, and the trade deficit is $100.
Despite the attention paid to quality management, many products still do not meet acceptable standards. Give some examples of products that you think are unsatisfactory. Why is this? What can be done to improve these products?
where N is the set of all individuals in the population, and hi is the human capital of individual i. Assume that H is fixed. Suppose there are no human capital externalities and factor markets are competitive.
Assume that the multiplier in the United States is 2 and that a major slump in Europe would reduce output and imports from the U.S. by 5% (relative to its normal level). Given your answer to part (a), what is the impact on U.S. GDP of the European..
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