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

Author Question: Discuss how taxes affect product and input markets. What will be an ideal ... (Read 39 times)

kellyjaisingh

  • Hero Member
  • *****
  • Posts: 540
on: Jun 29, 2018
Discuss how taxes affect product and input markets.
 
  What will be an ideal response?

Question 2

What are the effects of an increase in labor productivity on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?
 
  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

scikid

  • Sr. Member
  • ****
  • Posts: 300
Reply #1 on: Jun 29, 2018
Answer to Question 1

Taxes change behavior, and changes in behavior can affect supply and demand in markets, causing prices to change. When prices change in input markets or in output markets, some people may be made better off and some worse off. These final changes determine the ultimate burden of a tax.

Answer to Question 2

The increase in labor productivity shifts the aggregate production function curve upward. The demand for labor increases, and the demand for labor curve shifts rightward. The increase in the demand for labor raises the real wage rate and increases employment. The increase in employment as well as the upward shift of the aggregate production function increase potential GDP. Potential GDP per hour of labor increases.


kellyjaisingh

  • Member
  • Posts: 540
Reply 2 on: Jun 29, 2018
Gracias!

abro1885

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Rivers Are a Product of Their Watersheds Rivers Are a Product of Their Watersheds
The major cortical input and output pathways of the dorsolateral prefrontal association cortex. ... The major cortical input and output pathways of the dorsolateral prefrontal association cortex. ...
Chemicals can adversely affect personal protective equipment (PPE) in three ways: They can permeate ... Chemicals can adversely affect personal protective equipment (PPE) in three ways: They can permeate ...
A close relationship between greenhouse gas emissions and a country’s gross domestic product A close relationship between greenhouse gas emissions and a country’s gross domestic product
Farmers’ markets provide fresh, local produce to consumers Farmers’ markets provide fresh, local produce to consumers
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Dissociative Disorders (Part 1)

For a complete list of videos, visit our video library