Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 1, Problem 7P
To determine
The pitfalls in economic thinking & identifying fallacy
Introduction:
In order to understand the logical reason behind the causes and the effects of related case along with it relating it with an underlying assumption
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Greg breathes a sigh of relief,thankful that he wouldn’t have to ask for directions to his office (again). It has been an exhausting first week. Once inside his office, Greg smiles fondly at a framed photo of a younger, sweatier version of himself (losing badly while) playing football with Peruvian community leaders. His focus on maintaining positive relationships with local Peruvian communities while handling his former company’s mining operation in the Amazon basin had attracted the attention of national media. After The Peruvian President retweeted the picture of Greg and his team playing football with the Peruvians, Greg became somewhat of a celebrity for a few days. Greg likes to joke that he keeps the photo in his office to remind himself of one of his greatest victories (the community engagement project was a huge success) and one of his greatest failures (Greg’s team lost the football game 9-0). Greg Cook steps…
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- ARTICLE: LUSAKA, Sept 27 (Reuters) - Zambia will not replace its value-added tax (VAT) with a non-refundable sales tax, Finance Minister Bwalya Ng'andu said on Friday, after the proposal met substantial opposition from businesses. "Government has decided to maintain the Value Added Tax, but address the compliance and administrative challenges," Ng'andu said in a budget speech. Zambia's mining industry fiercely opposes the tax - just one sore point between the government and the economy's most important sector. Based on your review of the article above, do you think that Zambia should replace the VAT tax with a national sales tax? Discuss the difficulties inherent in collecting the VAT tax compared to the simplicity of a sales tax. What are the pros and cons of each system?arrow_forwardurgentarrow_forward21. Assuming Mexico, one of the major trading partners with the United States, starts experiencing an economic slowdown with falling GDP and rising unemployment. Other things being equal, of the United States to Mexico will which will ultimately bring the GDP of the United States. exports ; increase ; down exports : decrease ; down exports ; decrease ; up exports ; increase; up none of the answers given is correctarrow_forward
- D6) How can markets explain the “hockey stick” phenomena? Select one: a. Markets were mostly immature in the early 18th century. They helped the firms to grow easily. b. Markets contribute to the economy by increasing the productivity of labour, by allowing people to specialise in the production of goods. c. The political and economic conditions in Great Britain helped the markets to grow faster so that GDP per capita increased substantially. d. All of the above.arrow_forwardInternational Macroeconomics-End of Chapter Problem During his presidency, Donald Trump attempted to alleviate the U.S. trade deficit by passing a series of tariffs on Chinese exports. Prior to President Trump taking office, the U.S. had an average tariff rate of 3.1% on Chinese exports, but by February of 2020, the average tariff rate had increased to 19.3%. During the same time period, the U.S. dollar went from 6.27 Chinese yuan per U.S. dollar to 7.10 Chinese yuan per U.S. dollar. Based on an analysis of the foreign exchange market, implementation of the tariffs would cause the dollar to O appreciate against the yuan, consistent with the data. appreciate against the yuan, contrary to the data. depreciate against the yuan, contrary to the data. depreciate against the yuan, consistent with the data.arrow_forward1arrow_forward
- 11) (MC) In the macroeconomic model below, Y is aggregate output, C is aggregate consumption, I is aggregate investment, r is interest rate, Go is government spending, Mo is supply of money, and t is tax rate. The variables Y, I, C, and r are endogenous, Go, Mo, and t are exogenous, and a, b, c, d, k, and m are parameters. a) Y* = Using Cramer's rule, solve for Y* and I*. Which of the following gives the equilibrium values of Y* and I*? b) c) d) Y* = f) Y* = e) Y* = Y* = Y* = 0 Y* = m Mo + b(ca) kd + m [1 − b(1 – t)] Y=C+I+Go C = a + b(1 t)Y Mo + Go kd + m [1 − b(1 – t)] - Mo+mGo+c+a kdm [1+b(1 t)] I* = mGo - c + a kd-bt dMo + m (Go+c+a) kd+m[1-b(1 – t)] - kdm [1 + b(1 aGo-c+mMo kd-bt I* = I* = I* = -dk (a + Go) t)] I* = I= c - dr MokY mr mCka+dGo kd + m [1 b(1 t)] - I* = 0 m - dk (a + Go) kd+m[1-b(1 – t)] mC (mCdMo) b(1 t) - dk (a + Go) kd+m[1-b(1 – t)] - (mC+dMo) b(1-t) kd-bt mCb(1 t) kd-btarrow_forwardGive typing answer with explanation and conclusionarrow_forwardSuppose the economy is operating at potential GDP when It experiences an increase in export demand. How might the economy increase production of exports to meet this demand, given that the economy is already at full employment?arrow_forward
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