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Q1. When output and employment slowed in early 2008, the Bush Administration and the Democratic Congress passed a legislation sending households a check for $600 for each adult (and $300 per child). How these checks were financed by borrowing. Would a Keynesian favor this action? Explain why or why not?
Q2. On aggregate demand does fiscal policy have a strong impact? Explain the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Explain government expenditure increases and large budget deficits of 2008-2011 strengthen aggregate demand? Talk about?
Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.
What is the short-run equilibrium price. What is the short-run equilibrium market quantity.
For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30.
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
By using calculus show that the production function exhibits diminishing returns to labor.
Compare the effects of these two policies in terms of their implications for the current account.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
Provide an appropriately labeled boxplot of the data below and use a randomization test to examine whether the null hypothesis holds that male and female turtles have the same mean serum cholesterol.
Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk.
What other variables should be considered when determining what is reasonable in terms of maintenance expense
What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
Explain what the GDP cost index is and what is its role in differentiating nominal GDP and real GDP.
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