Homework Answers
ANSWER:
GIVEN THAT:
THE TAX MULTIPLIER IS ESTIMATED TO BE 1.7 AND $121 MILLION:
1.Change in the taxes will Impcat the prices of the Product,
2. Increase in government taxes results in increase in price of the product,in the same way Decrease to in government taxes results in decrease in price of the product.
3. As a result of increase in price, the supply will increase and demand will decrease in the same way due to decrease in price supply will decrease and demand will increase.
4. In the given situation Tax multiplier is 1.7 Govt taxes reduced by $ 121 Million , so that the aggregate demand will increase by ($121 Million * 1.7 = 205.7)
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demand curve for heating oil. How much consumer surplus would each
household lose if it had to pay $2 per gallon instead of $1 per
gallon for heating oil, assuming there were no other changes in the
household budget?
Instructions: Enter your response rounded to two
decimal places.
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the Islandian government afford to cut each...
is this correct? please help
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