A. Covid 19 Effects Using the consumer choice theory, show the impacts of the following: a. Person becomes unemployed and then gets unemployment insurance o. Person has their hours reduced to part-time and then gets a rescue check c. Worker sees a reduction in their payroll tax from 12.5% to 10%. Using theory of the firm, show and describe the impacts of the following: a. They are required to shut down o. They then receive a loan (e.g., PPP) that becomes a grant if they use it to cover the salaries of their employees Use the macroeconomic model (Y = C +I + G +NX) to describe the following: a. Reduction in income to households because government shuts the economy down p. Congress and the President pump $2 trillion into the economy Why do people call the current recovery a K-style recovery.
A. Covid 19 Effects Using the consumer choice theory, show the impacts of the following: a. Person becomes unemployed and then gets unemployment insurance o. Person has their hours reduced to part-time and then gets a rescue check c. Worker sees a reduction in their payroll tax from 12.5% to 10%. Using theory of the firm, show and describe the impacts of the following: a. They are required to shut down o. They then receive a loan (e.g., PPP) that becomes a grant if they use it to cover the salaries of their employees Use the macroeconomic model (Y = C +I + G +NX) to describe the following: a. Reduction in income to households because government shuts the economy down p. Congress and the President pump $2 trillion into the economy Why do people call the current recovery a K-style recovery.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A. Covid 19 Effects
Using the consumer choice theory, show the
impacts of the following:
a. Person becomes unemployed and then gets
unemployment insurance
6. Person has their hours reduced to part-time and
then gets a rescue check
c. Worker sees a reduction in their payroll tax from
12.5% to 10%.
Using theory of the firm, show and describe the
impacts of the following:
a. They are required to shut down
6. They then receive a loan (e.g., PPP) that becomes
a grant if they use it to cover the salaries of their
employees
Use the macroeconomic model (Y = C +1 +G +NX)
to describe the following:
a. Reduction in income to households because
government shuts the economy down
6. Congress and the President pump $2 trillion into
the economy
Why do people call the current recovery a K-style
recovery.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F290fd3ac-9d78-4d7e-9622-76cd039988d0%2Fa9165a4d-f9f9-4757-9284-ffcacf316808%2Fjlelbc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A. Covid 19 Effects
Using the consumer choice theory, show the
impacts of the following:
a. Person becomes unemployed and then gets
unemployment insurance
6. Person has their hours reduced to part-time and
then gets a rescue check
c. Worker sees a reduction in their payroll tax from
12.5% to 10%.
Using theory of the firm, show and describe the
impacts of the following:
a. They are required to shut down
6. They then receive a loan (e.g., PPP) that becomes
a grant if they use it to cover the salaries of their
employees
Use the macroeconomic model (Y = C +1 +G +NX)
to describe the following:
a. Reduction in income to households because
government shuts the economy down
6. Congress and the President pump $2 trillion into
the economy
Why do people call the current recovery a K-style
recovery.
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