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Senator Snodgrass says, “You economists say the economy is recovering from the recession but corporations are sitting on piles of cash and the unemployment rate is not declining. If the economy is really getting better, why aren’t more people getting hired? I don’t think you know what you are talking about!” Carefully explain to the Senator why the facts he cites can be consistent with recovery from a recession.
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. The amount of the tax on a case of beer is $_______ per case. Of this amount, the burden..
Bonds issued by the U.S. Treasury consistently have lower yields than other bonds mainly because:
Morgan Stanley and Goldman Sachs converted their charters to become commercial banks rather than investment banks as a result of the credit crisis. What advantages did they derive from this conversion? Were there any disadvantages from the change?
If the average worker produces $80,000 of GDP, explain by how much will GDP increase if there are 150 million labor-force participants and the unemployment rate drops from 5.2 to 4.5 percent.
If a nation exported much of its output but imported little, would it be better or worse off? How about the reverse; that is, exporting little but importing a lot?
Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust the price? Compute the profit consequences of the change.
Identify what FIDO stands for and how 3M puts FIDO into practice. Assess whether FIDO’s approach could work for other companies or if it is unique to 3M and the products they produce. Write three pages on whether 3M’s specific practice of hiring loca..
Illustrate what price-quantity comb I country maximizes your firm's profits. Is Demand elastic, inelastic or unit elastic at the profit-maximizing price-quantity combination.
How can these leaders use their control over current taxes, subsidies and government debt to force their successors to reduce steady -state government expenditures below 900,000 goods.
The manufacturer's managers are convinced that they could make more sales if they could convince the retailers to carry a full line of products. How could the manufacturer induce its retailer to carry a fuller line of products
Explain how much business CPI does abroad, the firm would expose 5 to 20 percent of revenue to currency fluctuations.
Illustrate what does a contraction Gap imply about the actual rate of unemployment relative to the natural rate
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