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1) Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.
2. Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium.
3. Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
4. Although GDP per capita is the most commonly used measure of a country's success, many economists believe it does not give an accurate measure of a nation's economic well-being. Some studies have concluded that that GDP is not the best measure of well-being, and although it may be the best available on a timely basis, other factors need to be considered in addition to GDP to give a more accurate picture of economic well-being and the disparity of well-being between nations. Clearly identify at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
What U.S. government policy has had a distortionary impact on corn production? Describe the far-reaching effects of this policy on the beef industry, illegal immigration and everyday consumer products.
What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
What if the pollution invades Baker's home and harms her health
Find out the percentage change from last year to this year in the United States' nominal exchange rate with Russia
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
Illustrate what happens to output and the optimal scale of a firm, and price if there is a free entry into the market.
If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the Average Fixed Costs per paper?
Illustrate what alternative decisions might you be able to make in the long run. Explain in 1 to 3 pages Clearly explain the factors of consider as your "Fixed Factor" and alternative short term and long term decisions.
Illustrate what are the values of public saving,national saving and private saving.
Using the simple model of multiple deposit creation, state the ultimate impact on M1 from the Fed's sale.
The oil price shock embodied an inflation rise of 3 percentage points and inflation turned out to be 1.5%. What effect did the financial crisis have on the unemployment rate?
Assume that in addition to policy action described above, Fed decides to sell a massive amount of Treasury bonds from open market. Elucidate in detail effect of this policy action on size of money supply.
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