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1. Why do government budget deficits grow during recessions?
2. Taxes can be progressive, regressive, or proportional. Define each and briefly offer an argument for why income taxes are usually progressive.
A firm is the only seller of the same good in two markets, market 1 and market 2. The inverse demand in market 1 is p1 = 200 ? q1, and the inverse demand in market 2 is p2 = 100 ? 2q2. The marginal cost of production is constant and equal to 40. t..
(a) What will be the result when each firm chooses a high-price strategy (b) What will be the result when Firm A chooses a low-price strategy while Firm B maintains a high- price strategy (c) What will be the result when Firm B chooses a low-price st..
short-term parkers and all-day parkers with respective demand curves of Ps=3-(Qs/200) and Pc=2-(Qc/200). Here P is the average hourly rate and Q is the number of cars parked at this price. The garage owner is considering charging different prices ..
The accompanying graph (on next page) shows the demand curve for gasoline and the supply curve for gasoline. The use of gasoline creates negative externalities, including CO2, which is an important source of global warming.
Each statement in either true (in all cases) or false (for at least one example) If false, construct a specific example to show that the statement is not always true. Such an example is called a counterexample to the statement. If a statement is t..
f such legislation passes, what will be its effects on earnings inequality? (For a review of relevant concepts, see chapter 13.)
Bolivia's real GDP per capita is growing at a rate of 1.3%, which would we expect in the long run Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.
A company is going to upgrade it machinery. It costs $150,000 to buy the machinery and have it installed. Operation and maintenance cost are $1500 per year for the first 3 years and then increase by $500 per year for the machine's 10-year salvage ..
Compute the equation of a trend line (similar to Equation 5.4) for these sales data to forecast sales for the next year. (Let 1997 = 0, 1998 = 1, etc., for the time variable.) What does this equation forecast for sales in the year 2007?
Suppose the bank in the table below has only reserves and loans on the asset side of its balance sheet, and demand deposits on the liabilities side of its balance sheet. Assets Liabilities Reserves $36,000 Demand Deposits $300,000 Loans.
Calculate the share of investment in GDP ( I GDP 100). On average, what is the share of investment spending in aggregate demand in the European Union?
What is the concentration of the chemical in ambient air above the stream? Note that the individual water- and air-side mass transfer coefficients for the chemical are 1 × 10-5 m/s and 0.005 m/s, respectively
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