Q1. A community wants to construct a hazardous waste incinerator for household hazardous waste. The cost of the facility is expected to be $4,000,000. The cost of operating this facility is estimated to be about $20,000 per year plus salaries of $100,000 annually. The insurance on the facility will be $3,000 per year. Illustrate is the annual cost of this facility to the community? Assume which the facility will have a useful life of around 15 years. The Capital recovery factor is .10380
Q2. Illustrate the effect of increasing Government spending on all the macro-economic variables assuming a horizontal AS curve.