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Countries seeking to adopt the euro as their currency must meet certain criteria, including the requirements to keep their government budget deficit equal to 3% or less of GDP, and to hold government indebtedness to less than 60% of GDP.
a. Discuss why there are fiscal policy criteria for joining a monetary union.
b. For countries that exceed or are near these limits (e.g., Greece, Portugal, Cyprus, etc.), the EU imposes so-called “austerity” measures (such as increased taxes and reduced government spending). What is the rationale for imposing austerity measures and what are their likely macroeconomic effects (especially on growth)?
The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure?
A local cell phone monopoly faces the following monthly inverse-demand for lines from a typical family: P = 100 – 20Q. The total cost to the monopoly is C(Q) = 20Q. This implies that the marginal monthly cost to the monopoly is $20 per line. (Please ..
How do such policies impact product price and industry output and employment? Are these kinds of policies easy to implement in practice? How has globalization of production affected our ability to control pollution?
illustrate what happen to public saving, national saving and private saving.
The prisoner's dilemma exercise assumes
What is the current U.S. Fiscal Policy – is it expansionary or contractionary? If the current GDP has declined or expanded over the past 2 quarters at least, which of the tools of fiscal policy would you use to try to rein in the economy and how is t..
Globalization has had a significant impact on the world economy and the economy of the United States. Using economic principles, describe how globalization has affected positively and negatively the economy of the United States.
Which is a characteristic of the German health care system?
Explain how Democratic is it to support an unelected judiciary. Defend your argument for or against the election of federal judges and Supreme Court justices.
q1. arc-bot technologies manufacturers of six-axis electric servo-driven robots has experienced the cash flows blow in
Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it.
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