BNQ12.3 Case: Suppose you have Invested in a New Computer Company whose Profitability depends on 2 Factors: (1) Whether the U.S. Congress passes a Tariff raising the Cost of Japanese Computers. (2) Whether the U.S. Economy grows Slowly or Quickly. Question: What are the Mutually Exclusive & Jointly Exhaustive States of the World that you should be concerned with?

Scenario: It is the year 2035, and many people in the United States are very happy with the state of the economy.  Real GDP has risen steadily over the past year, unemployment is low, and workers are confident they will continue to be employed.  People are buying homes, refrigerators, cars, and everyday goods.  Inflation is rising though, and people are concerned that prices may be rising faster than their incomes.  Nonetheless, the stock market is rising and people remain confident.  Which of the following fiscal policy combinations by Congress would be appropriate to address this economic scenario?     Increase both taxes and government spending at the same time   Decrease both taxes and government spending at the same time   Increase taxes and decrease government spending   Decrease taxes and increase government spending

1. You have been hired as a consultant for the City of Los Angeles. City planners need to understand population data and use the data to predict the population in the future. Having a good estimate of the city's population helps the planners decide how much money will be needed for city maintenance and services, and helps local officials anticipate the needs for housing, school and other construction, and much more. Your work begins with finding the population of Los Angeles in the United States Census for 1920 to 2010. The U.S. Census Bureau data for the City of Los Angeles 1920-2010 appears in table below. Year Actual Population using Population using Quadratic Model Population using Exponential Model х, уears since Population Linear Model 1920 1920 576,673 10 1930 1,238,048 20 1940 1,504,277 30 1950 1,970,358 40 1960 2,479,015 50 1970 2,816,061 60 1980 2,966,850 70 1990 3,485,398 80 2000 3,694,820 90 2010 3,792,621 a. One way to model the population is with a linear function, y = mx…