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If a representative firm with long-run total cost given by TC = 50+2q+2q^2 operates in a competitive industry where the short-run market demand and supply curves are given by Qd = 1,410 - 40P and Qs = -390 +20P, its long-run profit maximizing level of output is.
Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them,solve the social planner's problem and show the equations ..
In the aggregate expenditure model, suppose that consumption function is given by C=800+0.58(Y-TP), that planned investment (I) equals 250, and that government buy
Japan has traditionally had an employment system characterized by a "lifetime" employment relationship between employer and employee and salaries that are based on length of service with the employer-starting low
Discuss the appropriate discretionary fiscal policy that the government should adopt, given the above situation.
Describe why some workers are more likely than others to be laid off or have a harder time finding another satisfactory job.
If the substitution effect dominates the income effect, then as increase in the wage rate will increase the quantity of labor supplied by an individual. The more complicated a production process is
Explain how the US government managed to accumulate a debt of over 14 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
If the Federal Government is giving more than it receives in tax revenues in an effort to reduce unemployment
Suppose are predicting a steady decline of 6% per year in dividends for the foreseeable future. What is the most you would be willing to pay for this stock.
Assume a indiidual has $8 to spend only on apples and bananas.
Compute the long-run impact of a permanent rise in money supply versus a permanent tax cut.
Briefly describe and critically possible short-run and long-run macroeconomic effects of this continuous increase of the federal fund rate
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