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Which of the following would be automatic stabilizers?
Employment-insurance payments
Cost-of-living escalators in government contracts and pensions
Free university tuition for unemployed workers after six months of unemployment, provided that they are under 30 years old and have had five or more years of full-time work experience since high school.
Is there a stigma attached to automatic stabilizers, and are they what are sometimes referred to, often derogatorily, as “entitlements”? As a student of macroeconomics do you see anything good in the automatic stabilizers? Why or why not?
A country club knows that each of its customers has a demand curve for golf rounds of q = 500 – p, where q is the number of rounds bought in a year and p is the price per round of golf. Furthermore, because it is so exclusive and there are not many m..
Assume which the market for avocados is perfectly competitive. The typical agribusiness firm is earning positive economic profit in the short-run equilibrium.
The government is considering increasing the full Social Security retirement age to 75. If this occurs, how do you expect this change would affect how much on-the-job training that workers will want to obtain over their working life?
Why is it difficult to analyze the welfare implications of growth in the neoclassical model? What proxy is often used to reach a conclusion about the effects of growth? What leads to the conclusion that, if welfare is to improve with growth in the la..
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also the consumer has $288 to spend, and the price of X, Px=16, and the price of Y, Py=1: How much X and Y should the consumer purchase in order to maximize her utility? How much total u..
A stock is projected to pay a dividend of $3 in 1 month. A three month at-the-money European put option on the stock has a premium that is $2.751 higher than the premium for a three-month-at-the-money European call option on the stock. The continuous..
Identifying and shaping public opinion has become a major goal of campaigns and elections. Identify and discuss the process by which people develop their political ideas. What are the four traditional agents of socialization and three additional new ..
The local community has instituted a price ceiling of $480. Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling
Consider an exchange economy with two prominent leaders: Romney and Bernanke. Each get utility from destroying jobs, J; and from power, P. Their utility functions are: URomney = ln(P) + 2 ln(J) UBernanke = 2ln(P) + ln(J) Their initial endowments are ..
Its demand curve can be written as P = 160 - Q and its short run total cost curve is equal to TC = 1000 + Q^2. What is the rate of output that maximizes ZZZ, Inc.'s short run profits?
Describe the four types of regional trading agreements discussed in class and show how each type creates a greater and greater level of economic integration. Using the European Union as your example, describe the challenges associated with the variou..
Suppose a consumer derives satisfaction from consuming tacos: those from Taco Bell and those from Chipoltle. Graph the budget line of the consumer under the assumption that he is offered a buy three, get one free deal at Taco Bell (limit one free tac..
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