Question

Use at least two types of graph ( AS- AD, or MS-MD, Phillips curve, labor market)...

Use at least two types of graph ( AS- AD, or MS-MD, Phillips curve, labor market) to explain and illustrate policy which is reduce tax in domestically made goods

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Policy: Reduction of tax on domestically made goods

As the tax on goods are decreased, the production cost also decreases. This decrease in production costs invreases the amount of production. The aggregate price level decreases as AS curve shifts to the right.  As price decreases, the demand for good increases, AD curve shifts to the right, The amount of output in the economy increases.

Due to increased production, there is greater demand for labor. Therefore, labour demand curve shifts to the right. The amount of unemployment in the economy decreases,

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Use at least two types of graph ( AS- AD, or MS-MD, Phillips curve, labor market)...
Use at least two types of graph ( AS- AD, or MS-MD, Phillips curve, labor market) to explain and illustrate policy which is Add a 5% income tax on the top 1%
Use the money market and the aggregate demand (AD) curve to illustrate how an increase in...
Use the money market and the aggregate demand (AD) curve to illustrate how an increase in government purchases can be offset by reduction in investment.
The labor market for architects has “cobwebs” and is described initially by the labor supply curve...
The labor market for architects has “cobwebs” and is described initially by the labor supply curve w=10+2E, labor demand curve w=50-E after which labor demand increases (due to a housing boom) to w=60-E. a. Give the original employment and wage levels and then three rounds of wage and employment levels. b. Illustrate the cobweb model on a graph, labeling the initial equilibrium point, a few rounds, and the new equilibrium wage and employment level.
Applying the AD/AS Model (please use graph a long with your answer) Consider the following two...
Applying the AD/AS Model (please use graph a long with your answer) Consider the following two events (i) Growth Surges in East Asia (ii) A sharp increase in oil price Use the AD-AS model to explain the seperate effects of each event on real GDP and the price level, starting from long-run equilibrium
Suppose there are two countries (a capital-abundant country and a labor-abundant country) and two goods (labor-intensive...
Suppose there are two countries (a capital-abundant country and a labor-abundant country) and two goods (labor-intensive good X and capital-intensive good Y). The two countries have identical demand for the two goods and are considering forming a free trade agreement. However, while this agreement received support from most voters in country A, many voters in country B were concerned that the agreement will likely widen income inequality in country B. Please identify which country is likely labor abundant and which...
8) Goods Market: Asset Market: C=70+2/3(Y-T) MS=245 I=100-400r MD=1/2(Y)-100r G=50 T=50 o What are the IS...
8) Goods Market: Asset Market: C=70+2/3(Y-T) MS=245 I=100-400r MD=1/2(Y)-100r G=50 T=50 o What are the IS and LM equations? o Calculate and show the equilibrium output and interest rates? o Considering a Keynesian Model, show graphically what happens to P, Y, and r in the SR when the there is an increased risk of the stock market changing the Money Demand by 25 regardless of Y or r. o What is the short run Y and r? o Suppose that...
Suppose the demand for real money balances is Md/P = L(Y, i), where L(Y, i) is...
Suppose the demand for real money balances is Md/P = L(Y, i), where L(Y, i) is an increasing function of income Y and a decreasing function of the nominal inter- est rate i. Assume that the interest elasticity of money demand is infinite when the nominal interest rate is zero. Money-market equilibrium is represented by the equation Ms/P = L(Y, i), where Ms is the money supply controlled by the central bank and P is the price level. The LM...
The bond market and stock market are two important types of financial markets. Which market would...
The bond market and stock market are two important types of financial markets. Which market would you prefer to use for your investments and why? In your answer, highlight at least three advantages and three disadvantages for your choice.
Instructions: 1.Pay attention to the different labels used in the charts. If you see an AD-AS...
Instructions: 1.Pay attention to the different labels used in the charts. If you see an AD-AS graph, that means you are to describe what happens in the US economy as a whole, or in the aggregate market, the market of ALL goods and services in the US. Unless noted otherwise, you are to describe both the short-run and long-run impacts. 2.On the other hand, if you see the regular S and D model, you are to describe the impact on...
The supply and demand curves for labor can shift. Use at least two different examples of...
The supply and demand curves for labor can shift. Use at least two different examples of positive and negative shifts of the demand and supply curves and explain why these shifts occur.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT