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Does our baseline model without search produce a multiplier? What assumptions must be made in the model with search to make the mul- tiplier match the larger estimates in the data. [Our model can match the lower estimates without considering search] What types of changes to our current model would make the multiplier bigger? If we consider output today (as opposed to tomorrow) the output we want to increase (by either increasing gov’t spending or issuing tax cuts) how would the addition of binding borrowing constraints increase the multiplier?
If one is preparing a contingent valuation study, what are the sources of bias that one migh encounter? If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project’s cost to ..
In the five years ending 2011, Switzerland enjoyed a fiscal surplus that averaged 1.3% of GDP, a trade surplus that averaged 2.6% of GDP, and a government debt to GDP ratio that averaged 40%. Use the appropriate graphs for a small open economy to ill..
Explain why the development of a strong central national government was so important after the civil war and deemed so necessary for the development of the nation. Cite reasons and results
In the economy of Panicia, the monetary base is $1,000. People hold a third of their money in the form of currency (and thus two-thirds as bank deposits). Banks hold a third of their deposits in reserve. What are the reserve–deposit ratio, the curren..
Illustrate what are the advantages and the risks of linking the scorecard to compensation.
The risk premium it charges on its loans is classified as profits in economics.
An ongoing approach debate concerns whether to legalize utilize of drugs such as marijuana also cocaine.
Derive the aggregate demand curve and plot it to scale. Show all of your work. Calculate the effect of an increase in government spending on GDP. Is the effect larger or smaller than in the case where consumption does not depend on the interest rate?..
Which of the following statements about an increase in aggregate demand is false? An increase in aggregate demand can be caused by a decrease in other countries’ interest rates. An increase in aggregate demand will result in no change in the price le..
Twenty randomly selected statistics students were given 15 multiple-choice questions and 15 open-ended questions, all on the same material. The professor was interested in determining on which type of questions the students scored higher.
Advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service.
As the price of tickets rises from $200 to $250, the price elasticity of demand for business travelers is , and the price elasticity of demand for vacationers is using the midpoint method. Therefore, the demand for airline tickets at this price range..
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