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The Financial Crisis and the European Debt Crisis
a. What were the main causes for the financial crisis that hit the world economy in 2007- 2008?
b. What caused the European debt crisis? Brieáy discuss the situations in Greece, Ireland, Spain and Portugal - what are the main problems in these economies?
Analyze the contribution that automatic stabilizers play in making a stable economy. Provide some examples of the automatic stabilizers and use them to illustrate their significance.
If deficit spending -crowds out some private investment, could future generations become worse off? If external financing eliminates crowding out, are future generations thereby protected?
Suppose autonomous net taxes rise through $500; the marginal propensity to consume=3/4. Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed.
Elucidate what is the impact of a trade surplus. What is the impact of a trade deficit? How do trade deficits and trade surpluses affect the firm you work for.
If you think that your company's performance is not sensitive to general economic business cycles, then describe why it is stable as the economy moves up and down.
Elizabeth Corday, a quality control supervisor for Surgery Products, Inc., Compute the unit cost growth rate using the constant rate of change model with continuous compounding.
"Too Big to Fail" is title of a book and a movie by HBO. It refers to the bailout of the major financial institutions that began in 2008, and at the time there was concern,
List out also describe the firms in the industry. Discuss the product, production methods, scale of production, and sources for raw materials.
Is it wrong to use the total income test for elasticity, when there is a direct relationship between price and total revenue the demand is elastic.
Explain why does the government support public education when the private sector also provides this service and describe why labor productivity is important but not the only key to improvement in living standards.
Elucidate the differences in unemployment rates among the United States and Western European countries.
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
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