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lukranit [14]
4 years ago
14

The standard view in economics is that tax cuts without​ ________ will​ ________ the budget deficit resulting in​ ________.

Business
1 answer:
lakkis [162]4 years ago
4 0
The standard view in economics is that tax cuts without SPENDING CUTS will INCREASE the budget deficit resulting in CROWDING OUT INVESTMENT. When a government lowers tax without minimizing its spending, it leads to crowding out investment effect, which is a situation in which increased interest rates leads to a decrease in private investment spending in such a way that it takes color out of the initial increase of total investment spending.
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Suppose that the duopolists Carl and Simon face an inverse demand function for pumpkins of P = 400 - Q, where Q = Qs + Qc is the
Usimov [2.4K]

Answer:

the Cournot-Nash equilibrium, Simon's production is 82 units

Explanation:

The Cournot-Nash Equilibrium for  Simon's production is calculated as follows:

P = 400 - Q \\ \\ Q = Q_s + Q_c

Reaction function of Carl is as follows:

Carl maximize profit at HR_c = HC_c

TR_c = P*Q_c

TR_c = (400 -Q_s -Q_c)Q_c

TR_c = 400Q_c -Q_sQ_c -Q_c^2

⇒ HR_c = \delta TR_c/ \delta Q_c

HR_c =400 -Q_s -2 Q_c

C_c = 30 Q_c + Q_c^2

⇒ HC_c = \delta C_c/ \delta Q_c

HC_c =30+2Q_c

Set HR_c = HC_c

400 - Q_s - 2 Q_c = 30 - 2Q_c  \\ \\ 400 - Q_s -30 = 2Q_c + 2Q_c \\\\(370 Q_s) = 4 Q_c \\ \\ Q_c = (370-Q_s)/4 \\ \\ Q_c = 92.5 - 0.25 Q_s \to Reaction \ function \ of \ Carl --- equation (1)

Reaction function of Simon

Since Simon maximize profit  at HR_s = HC_s

TR_s = PQ_s \\ \\ TR_s = (400-Q_c -Q_s)Q_s \\ \\ TR_s = 400 Q_s - Q_cQ_s - Q_s^2

HR_s = \delta TR_s/ \delta Q_s

HR_s =400 - Q_c -2Q_s

C_s = Q_s^2

HC_s= \delta C_s/ \delta Q_s

HC_s=2Q_s

Set HR_s = HC_s

400- Q_c - 2Q_s = 2Q_s \\ \\ 400 - Q_c = 2Q_s+2Q_s \\ \\ 4Q_s = 400 - Q_c \\ \\ Q_s = (4000- Q_c)/4 \\ \\ Q_s = 100 -0.25 Q_c  ---  Reaction \ function \ of \ Simon \ -- equation (2)

Substituting equation (1) into equation (2)

Q_s =100 -0.25Q_c \\ \\ Q_s = 100 - 0.25(92.5-0.25 Q_s) \\ \\ Q_s = 100 -23.125 +0.0625Q_s  \\ \\ (Q_s-0.0625Q_s) = 76.375 \\ \\ 0.9375 Q_s = 76.875 \\ \\ Q_s = 76.375/0.9375 \\ \\ Q_s = 82

Thus; the Cournot-Nash equilibrium, Simon's production is 82 units

3 0
3 years ago
For his statistics class, Casey is statistically pooling the results of several studies into a single analysis. Clearly, Casey h
Murrr4er [49]

Answer:

The correct option is B

Explanation:

Meta- analysis is the tool for the analysis of statistical which combine or merge the consequences of the multiple scientific studies. This analysis is  conducted when there are multiple scientific studies, with each and every individual study that reports, the evaluations which are expected to have the  degree of the error.

Therefore, Casey who is pooling the results statistically of the several studies into a single analysis. So, Casey assigned to conduct or perform a meta - analysis.

5 0
3 years ago
How does the mode of corroborating (e.g. strategic alliance, joint venture, licensing, outsourcing, collective research organiza
scoray [572]

Answer:

Organizations are always looking for new strategies to leverage their profits and market positioning. Corroboration arises then as a strategy in which two or more companies unite temporarily or not, through strategic alliance, licensing, joint venture, outsourcing, etc., with the common objective of expanding their market share and profits.

The way to corroborate influences the success of a collaboration because the chosen strategy is aligned with the organizational values ​​and objectives. When two companies join a strategic alliance, for example, they share their resources, knowledge, technologies, market value and others, to achieve different joint benefits, such as competitive advantage, consumer attraction, greater positioning, increased market share, etc.

5 0
3 years ago
Suppose the economy is in an inflationary gap. According to neoclassical economists, what will happen
prisoha [69]

Answer:

The following portion describes the description and as per the particular context.

Explanation:

  • Sometimes when, however according to neoclassical economics, the economy would be in a monetary expansion void, the economy would rebound towards its maximum or projected production level.
  • That's because the ecosystem or the market, throughout essence, is personality. Wage levels are not going to increase. To decrease the difference, joblessness could also increase and therefore not decline.
8 0
3 years ago
Mary suffers $25,000 in uninsured losses in 2019 when her house burns down while she was on vacation. This loss was not due to a
galina1969 [7]

Answer:

$0

Explanation:

The Tax Cuts and Jobs Act eliminated the possibility of deducting casualty losses if they were not caused by federally declared natural disasters. The only way Mary could deduct the $25,000 loss is that she had some type of casualty gain during the year that is offset by this loss. Casualty gains result when a person receives more money from an insurance company due to an event, e.g. fire, than the basis of the property. But in this case, there is no prior casualty gain, so the casualty loss cannot be deducted.

5 0
3 years ago
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