I would like to know the detailed solution process and the answer to question number 1 a,b. Please explain it.

1. Samsung and Sony have to decide whether they will increase the spending on Research and Development (R&D) Department in order to improve the features of their products which are sold worldwide. If they both increase the spending, the gains of doing so are zero for both. If only one of them increases the R&D budget while the other doesn’t, the gain of the improved features is equal to the loss of the other company. If both of them do not change R&D spending, their customers will switch to other brand from the U.S., both will equally make huge losses.

a) Construct the pay-off matrix for the game. Is this a zero-sum game? Why or why not

b) Is there a dominant strategy equilibrium? If so, what is it?

Refer to the information in the table that follows to answer the question that follows:

The economy is at the equilibrium level of output. If government spending increases by 250 (from 200 to 450), then calculate the new equilibrium level of output?

Select one:

a. 5400

b. 450

c. 3650

d. 5900

Congress decides to increase government spending and taxes by equal amounts. Use the IS-LM AD-SRAS-LRAS model to illustrate graphically the short run impact of the increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment in short run. Explain clearly which curve would shift and why. What will be the long run impact of this increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment. Show the appropriate movement of curves both for the short run and the long run. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the short run equilibrium values and vi. The long run equilibrium values.

The relationship between consumption and disposable income is such that as

Group of answer choices

consumption rises, disposable income falls

disposable income rises, consumption falls

disposable income rises, consumption rises

disposable income rises, saving falls

The federal government’s principal tool in altering consumer spending is

Group of answer choices

changing corporate taxes

changing federal sales taxes

changing unemployment insurance benefits

changing personal income taxes

The difference between disposable income and consumption spending is

Group of answer choices

transfer payments

personal taxes

saving

personal investment

The relationship between consumer spending and disposable income is called the

Group of answer choices

consumption function

income function

marginal income function

taxation function

Write a python program:
There is a file called file 2. File2 is a txt file and I have written the contents of file 2 below in the exact format it was in notepad.

# This comment does not make sense
# It is just to make it harder
# The job description starts after this comment, notice that it has 4 lines.
# This job description has 700150 hay system points\\
the incumbent will administer the spending of kindergarden milk money
and exercise responsibility for making change he or she will share
responsibility for the task of managing the money with the assistant
whose skill and expertise shall ensure the successful spending exercise

from typing import Dict, List, TextIO
def job_description(file2: TextIO) -> List[str]:
Write a program such that the file2 is outputted in such a way so that the output is like this so that the line containing '#' is not printed and the non hastag part is written in strings:

The string read from File2.txt is: ['the', 'incumbent', 'will', 'administer', 'the',
'spending', 'of', 'kindergarden', 'milk', 'money', 'and', 'exercise', 'responsibility',
'for', 'making', 'change', 'he', 'or', 'she', 'will', 'share', 'responsibility', 'for',
'the', 'task', 'of', 'managing', 'the', 'money', 'with', 'the', 'assistant', 'whose',
'skill', 'and', 'expertise', 'shall', 'ensure', 'the', 'successful', 'spending',
'exercise']

Scenario 1: Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.

Shift the appropriate curve on the graph to reflect this change.

This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to__________ and the level of investment spending to ____________ .

Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government implements a new investment tax credit.

Shift the appropriate curve on the graph to reflect this change.

The implementation of the new tax credit causes the interest rate to _____________ and the level of investment to ________ .

Scenario 3: Initially, the government's budget is balanced; then the government significantly increases spending on national defense without changing taxes.

This change in spending causes the government to run a budget _________ , which _________ national saving.

Shift the appropriate curve on the graph to reflect this change.

This causes the interest rate to ___________ , the level of investment spending.

Sohrab has a job and usually makes enough money to pay rent, but if the economy goes bad, he struggles to pay rent and buy food. Which statement best describes his situation?

He is not poor

He is absolutely poor

He is relatively poor

He is vulnerable to poverty

Which one is Not a potential explanation for business fluctuations?

Seasonal unemployment

A change in spending

A change in Production

Saving and Investment inequality

which one is the biggest component of spending?

Government expenditure

Net export

Consumption

Investment

Which factor increases consumption spending?

a rise in disposable income

a rise in the interest rate

a fall in wealth

Households pessimism about future

If aggregate expenditure function is AE = 1 + 0.7GDP, when GDP (income) increases by 3 dollars, how much spending will increase? (Numbers are in billions)

2.1

1

3

3.1

Regarding to the topic discussed in the article, what is one limitation with typical cross-country studies on the connection between democracy and economic growth ?

Their results are not conclusive

None

They capture correlations rather than causal effect.

They capture causal effect rather than correlation

1)Two good (x and y) are complements. The cross-price elasticity of x with respect to the price of y is

a. positive.

b. negative.

c. zero.

d. None of the above.

2) For an inferior good, the income and substitution effects

a. Work together.

b. Work against each other.

c. Can work together or in opposition to each other depending upon their relative magnitudes.

d. Always exactly cancel each other.

3) Elasticity measures

a. The slope of a demand curve.

b. The inverse of the slope of a demand curve.

c. The percentage change in one variable in response to a one percentage increase in another variable.

d. The percentage change in one variable in response to a change in another variable.

4) The demand curve function is given P=100–Q. At price 40, the consumer surplus is

a. 40.

b. 60.

c. 1800.

d. 2400.

5) If the demand for a product is inelastic, then a rise in price will

a. cause total spending on the good to increase.

b. cause total spending on the good to decrease.

c. keep total spending the same, but reduce the quantity demanded.

d. keep total spending the same, but increase the quantity demanded