Decreasing taxes can stimulate the economy by putting more money in the circulation or by boosting the spending .The tax cuts stimulate the economic growth only in the short-term.
Explanation:
Due to an decrease in tax the after tax income of an individual increases which is used by individuals to buy more product and services.Thus reduced tax rates leads to an increase in saving and investment, which leads to an increase in the productive capacity of the economy as a whole
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extra info: The inflation gap is a Negative function of the unemployment gap. Expectations eliminate the effectiveness of the policy.
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When decelerating below long-run trend growth, stimulate it with expansionary policy.
For this case we have the following function:
f (x) = 2x ^ 2-24x + c
We set zero to find the roots of the function.
We have then:
2x ^ 2-24x + c = 0
x ^ 2-12x + c / 2 = 0
Factoring we have:
(x - / + x1) (x - / + x2) = 0
On the other hand we have:
x2-x1 = 18
x2 + x1 = -12
Solving the system we have:
x1 = -15
x2 = 3
Substituting we have:
(x-15) (x + 3) = 0
Rewriting:
x ^ 2 -12x - 45 = 0
Therefore, the value of c is given by:
c / 2 = -45
c = -90
Answer:
the value of c is:
c = -90
Answer:
The student must purchase the number of items in which the price exceeds the ability of the student to pay.
<em>The number of bags he will purchase at the price of $4, is 2, because the willingness to purchase is $4.
</em>
The solution is therefore 2 sachets of jelly beans.
Whenever the student eats 2 bags of jelly beans at $4, the consumer surplus is determined as follows;
<em>Consumer Surplus</em>
<em>= ($5-$4) + ($4-$4)</em>
<em>= $1.</em>
