This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Using the simple Keynesian model, consider the case where taxes are lump-sum. Compared to the model ... (Read 206 times)

ahriuashd

  • Hero Member
  • *****
  • Posts: 535
on: Jun 30, 2018
Using the simple Keynesian model, consider the case where taxes are lump-sum. Compared to the model without taxes, the investment multiplier in this model will
 
  a. not change.
  b. be larger.
  c. be smaller.
  d. be equal to 1

Question 2

Is it possible to have a production function that exhibits both a diminishing marginal product of labor and constant returns to scale? Explain.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ErinKing

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Yes is it possible. Under constant returns to scale, both labor and capital are increased at the same time, increasing output by the same proportion. Under the law of diminishing returns, labor alone is increased while holding other factors of production, particularly capital, constant. As a result, output will not change proportionally and the marginal product of labor declines.


ahriuashd

  • Member
  • Posts: 535
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

deja

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

How genes produce proteins that determine traits in a simple dominant-recessive relationship. How genes produce proteins that determine traits in a simple dominant-recessive relationship.
The wild radish, Raphanus sativus, has become a model for studying the mating behaviour of plants. The wild radish, Raphanus sativus, has become a model for studying the mating behaviour of plants.
Critical thinking model for safety evaluation Critical thinking model for safety evaluation
Three-dimensional model of DNA. Three-dimensional model of DNA.
The Holliday model for homologous recombination The Holliday model for homologous recombination
A model for factor-independent termination of transcription A model for factor-independent termination of transcription
Video: Multiple Sclerosis Animation

For a complete list of videos, visit our video library