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Budget Deficits and Debt
Answer the following short essay questions about U.S. fiscal policy. While this is not a paper, you must still properly cite your answer and write in full sentences.
Suppose one economist believes the target rate of unemployment is 4.3 percent while another believes it is 5.5 percent. Using Okun's rule of thumb, by how much would you expect their estimates of potential GDP to differ in a $12 trillion economy
What are the risks and opportunities of the strategies followed by Pepsi? of Coca Cola? 3.) How would you respond to Coca-Cola's change in sales policy? How would you ensure Pepsi's board that this response will allow you to remain competitive and..
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.
NJ taxes wine sales. While the retailers pay the taxes on wine sales, they may passon some or all of these taxes to consumers by raising prices. Identify the specific tax (tax per bottle sold) for which NJ's equilibirum market price and quantity e..
What are the three categories into which the Bureau of Labor Statistics divides everyone? How does it compute the labor force, the unemployment rate, and the laborforce participation rate?
Define and describe the difference between the absolute advantage and the comparative advantage.
Why were the IMF and U.S. Treasury stubbornly committed to shock therapy and rapid privatization in Russia? What was their political objective? What "imminent danger" worried them?
Hurricane Katrina may sting United State economic growth through choking energy supplies even as damages caused by the storm spur massive rebuilding and emergency government spending.
Are chocolate and textbooks complements or substitutes for Jen? b. Calculate the income elasticity for chocolate. Is chocolate a normal good? 2c. Assume we observe the following: Qt = 5; pc = 2; pt = 2.
Suppose that you are a monopolist who produces gizmos, Z, with the total cost function C (Z) = F + 50Z; where F represents the firms fixed costs. Your marginal cost is MC = 50. Suppose also that there is only one customer in the market for gizmos, an..
Illustrate what is the purpose of the foreign exchange markets
The World Bank is currently advising newly industrialized nations on how to increase growth and they have asked for your help.
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