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"Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices?"
Microeconomics, Economics
Question: A law is passed that requires every firm in a perfectly competitive industry to give six months' notice before it closes. What effect, if any, will this law have in the short run? In the long run? The response ...
Question: Why would more accurate economic forecasting make it easier for policymakers to stabilize the economy? Describe two ways economists try to forecast developments in the economy. The response must be typed, singl ...
Question: The directors of Ace Airlines have decided to incentivize their 1,000 employees by issuing every one of them 200 shares of stock. (Assume there is no problem of equity dilution, because the company has 40 milli ...
Question: Suppose you were assigned the task of choosing a price that maximizes economic surplus in a market. What price would you choose? Why? The response must be typed, single spaced, must be in times new roman font ( ...
Question: The graph shows a decrease in supply (from S1 to S2), followed by a decrease in demand (from D1 to D2). Choose an application or situation in the economy or a specific economic situation to describe this graph. ...
Question: 1. Consider the Rothschild-Stiglitz adverse selection model that we discussed in the class. Suppose a competitive insurance company proposes an insurance policy that provides full insurance to all individuals, ...
Question: Apple is about to release its latest technology. The company needs to develop a plan to communicate with key stakeholders about the release. You have been tasked with identifying those main stakeholders and sel ...
Question: The United States economy is experiencing a moderate economic downturn. The Republican President has addressed the downturn using stereotypical Republican methods. The economy failed to improve significantly, a ...
Question: Please Using your own word. Under what circumstances is it necessary and desirable to monetize invaluable environmental amenities. How might this further environmental conservation efforts. The response must be ...
Question: Adidas will put on sale what it bills as the world's first computerized "smart shoe." But consumers will decide whether to accept the bionic running shoe's $250 price tag-four times the average shoe price at st ...
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