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Some economists believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner? Why or why not?
suppose a person defects from cuba (a country that generally disregards the use of markets) to the united states and asks to see a market in action. when would you take her? did you give her a complete showing of this market?
An oil cartel effectively increases the price of oil by 100 percent leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equlibrium at the same level of output and prices at the time of the shock.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
The principle upon which Adam Smith first claimed that free trade benefits all countries. It holds that a country benefits from trade when it produces a particular good at a lower cost (in terms of labor input) than it costs to produce the good in..
Consider a market where demand is: P = 6 - Q and supply is S: P = Q. 1. Equilibrium quantity Qe is Total surplus TS is (do not forget to account for the subsidy expenditure SE) Construct a budget neutral subsidy in the above market.
Explain Comparative Advantage, specialization, and trade support by example. Illustrate the invisible hand theorem supported by example.
Evaluate the range of marginal revenues
the state power department argues that a 5 percent discount factor should be used in evaluating the projects, because that is the government's borrowing rate. the human resources department suggests using a 12 percent rate.
George and Nancy had a $30,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 ded..
Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.
Budweiser, Miller and Coors who together produce 80% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
fall in demand, high unemployment etc but how can I understand the similarities (or differences) more deeply? Can you help explain.
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