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Suppose that there is an increased confidence of the economy, shared among the economic agents: the representative consumer becomes optimistic of the economic performance and therefore, is willing to consume more, given his/her own income. Moreover, the representative firm becomes more confident about the business environment and therefore, plans to increase the investment expenditure. Using closed-economy 2-period macroeconomic model, determine the effects of this on current aggregate output, current real interest rate, current employment, current real wage, current consumption, and current investment. Explain your results with diagrams.
How to understand economic inequality? how to measure economic inequality ? what's the role of government to solve the problem inequality?
An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest ra..
q.motorolas iridium a go-anywhere mobile phone system that beamed signals down from 66 satellites was called the 8th
Indicate whether the following events would cause an? "increase or a decrease in demand or an? "increase or a decrease in the quantity demanded?" for? cable-based Internet access? service, which is a normal good.
Describe how the economic theories and principles you have studied in this course have deepened your thinking about economic behavior.
Explain how, despite being free, public education can actually make a household better off by consuming less education?
A taxpayer (of a particular profile) can either comply with the IRS code, or cheat and receive some benefit. The IRS can either audit the taxpayer at a cost or do nothing. If the taxpayer cheats and the IRS audits then the tax payer faces penalty (fi..
Where Yp is potential GDP, Y is real GDP in billion of dollars and P is GDP deflator. By how much overall should the government expenditures change to achieve potential GDP level if MPC=0.8? Calculate the size of inflation/deflation associated with t..
The risk-free rate of return is 3.5 percent. Illustrate what is the current value of one call option on this stock if the exercise price is $40.
We discussed how racial segregation concentrates economic, social, and cultural capital in white communities. This disparity creates dissimilar opportunity structures that distinguish racial groups according to potential life course trajectories.
Suppose that in a competitive market without government interventions, the market equilibrium is Q* and P*. Graphically show the consumer surplus, the producer surplus and the social surplus under the following government interventions. The governmen..
Suppose someone else tells you that even if average real wages or average real compensation per hour increase, economic inequality could increase as well. Is this possible? To judge that overall prospects for a motion, what information might you want..
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