Blinder and Zandi estimated multipliers for different kinds of tax cuts. They estimate that the multiplier for the Earned Income Tax Credit, a program for low-wage workers, is 1.24, while the multiplier for an across-the-board tax cut for all tax payers is 1.02. Why do you think the across-the-board tax cut has a lower multiplier?

(30 total points) suppose a firm’s production function is given by q = l1/2*k1/2. the marginal product of labor and the marginal product of capital are given by: mpl = 1/ 2 1/ 2 2l k , and mpk = 1/ 2 1/ 2 2k l . a) (12 points) if the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output q = 18?