Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Question
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Chapter 3, Problem 2P
A
To determine
The influence of working husband and wife on the household production.
B
To determine
The influence of location of the household on the production of the household.
C
To determine
The influence of the high sales tax on food purchases on the production of the household.
D
To determine
The influence of high property tax rate on the household production.
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Students have asked these similar questions
Why must total spending be equal to total income in an economy?
Total income plus total spending equals total output.
The value-added measurement of GDP shows this is true.
Every dollar that someone spends is a dollar of income for someone else.
all of the above
Labor Market Data
Price
$5
$10
$15
$20
$25
3,000,000 6,000,000 9,000,000 12,000,000 15,000,000
Qd 15,000,000 12,000,000 9,000,000 6,000,000 3,000,000
Price
$30
$25
$20
$15
$10
$5
+
+-
x-
3 6
Do
+
+
F
9 12 15
Quantity (In millions)
Area of a triangle = 1/2* base *height
Market Efficiency & Total Surplus
Worth Publishers
SCENARIO:
The state government is considering raising the minimum
wage from $15 per hour to $20 per hour over the next 3
years. As an economic advisor to the governor, you have been
asked to provide a recommendation on whether the minimum
wage should be increased based on economic theory.
Consider the labor market data provided.
Prepare a brief report that:
1. Explains whether the labor market is currently efficient at the
equilibrium wage of $15 per hour. How would you know? At
equilibrium, what (dollar amount) is the Total Surplus this market
provides? Show your rationale with numbers.
2. Analyzes the impact on total surplus in the market if the
minimum wage is raised…
Draw the IS-LM diagram at equilibrium and use it to show how one or both of the curves change based on the following exogenous changes.
An increase in taxes.
An increase in the money supply
An increase in government purchases
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