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This regards chapter 7 and 9 of intermediate economics.please include graphs in explanations If the government imposes a tax on interest earned on Bonds: a)

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This regards chapter 7 and 9 of intermediate economics.please include graphs in explanations

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If the government imposes a tax on interest earned on Bonds: a) How is the demand for Money affected? b) What is the impact on Equilibrium in the Asset Market? Question 2 Suppose a small town has 1200 working age citizens. At present, 600 are employed and 150 are not employed (100 of which are actively looking for work). a) What is the unemployment rate? What is the participation rate? b) If 50 more citizens begin looking for work, how do the answers in a) change? Question 3 Suppose a new type of technology increases the productivity of workers by 15%. a) How will this affect the labour market and full employment output? b) How will this affect Investment? c) How your answers to a) and b) affected if the new technology is skill biased

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