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(Effects of Fiscal Policy) Recently some legislators have called for tax increases to reduce the federal budget deficit. Conservatives have countered that such tax increases could plunge the economy into a recession. Using aggregate supply and aggregate demand, explain how increases in taxes would lead to a loss of output and a dampening of prices. Are there arguments on both sides?
This problem is based on the Ricardian Model. Assume that 2 countries, Stormlands and Reach, use White Walkers' labor to produce 2 goods, lumber and wheat.
Knowing that a neoclassical, capitalist economy depends on continuous economic growth (by making its production, distribution, and consumption more efficient), what might a savvy p
List and briefly describe the principal causes of high population growth in developing countries and the major consequences.
how can a country maintain equilibrium GDP with foreign trade?
What are the pros and cons of monetization of public debt
Unemployment classification Economists sometimes differentiate between different types of unemployment. There are many type of ways of classifying unemployment however the foll
if govtment face cost push inflation which policy govtment should take to control inflatoin?
definition of cheap money
suppose that a persons wealth is kshs. 50,000 and her yearly income is kshs. 60,000. suppose further that her money demand function is given by Md = y(0.35-i) where i= interest
Explain why P=MC in the short-run equilibrium of the perfectly competitive firm, whereas in the long-run equilibrium P=MC=AC.
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