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a. In the long-run model, the difference (T-G) measures the government budget deficit or surplus. Explain the difference between the budget deficit and the trade deficit. What type of policy would reduce a budget deficit? What type of policy would reduce a trade deficit? Base your discussion should on the insights from chapters 3 and 6 of the Mankiw text. b. Look at the historical data for the U.S. budget deficit. Cite your source. For a historical view, consult the table from the Economic Report of the President (https://www.whitehouse.gov/omb/budget/Historicals (Links to an external site.)). Briefly describe the historical trend and the future outlook for the U.S. budget.
In the presence of “foreign repercussions,” why is the multiplier for an autonomous increase in home country exports smaller than the multiplier for an autonomous increase in home country investment? Explain in economic terms.
Illustrate what is the GDP of George's and John's island in terms of clamshells.
College Copy Shop (CCS) compiles, copies, and sells reading materials to students. The compilations are prepared on the instructions of professors, who indicate which parts of which publications should be included for their students. Which type of in..
What are transfer payments, and how do they make their way into the GDP calculation? If one added up the value of all intermediate goods that went into the production of real GDP, the total value of intermediate goods would be
Explain why is the law of supply and demand in applicable without a ceteris paribus assumptions.
Your employer allows you to purchase a parking permit with “pretax dollars” – that is, you don’t have to pay taxes on the money that you used to purchase this permit. Does allowing some people to purchase certain goods or services using pretax dollar..
Illustrate what is the new level of gross national debti. If 100 percent of the deficit is financed by the sale of securities to federal agencies.
Assume that the skateboard industry is monopolistically competitive. Assume that skateboard manufacturers are earning short-run economic profits. At the profit maximizing price you identified in part a, would the typical firm’s demand curve be price ..
Holding everything else constant, if interest rates increase:
Pick a recent current event that makes causal claims. Locate a news article or story about that event. Begin to think about the causal claims being made. What evidence was presented? Was it adequate to establish a causal link?
what rate of interest would she need to obtain her goal. Are cash payments that companies make to shareholders. Are cash payments that companies make to shareholders.
What were the main causes of the real estate bubble and the ensuing financial crisis? Why did the crisis spread from subprime mortgages to the entire financial sector and, ultimately, the economy? How has the crisis been reflected in the United State..
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