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Q1. If deficit spending crowds out some private investment, could future generations be worse off? If external financing eliminates crowding out, are future generations thereby protected?
Q2. Illustrate what is an opportunity cost? Elucidate how does the idea relate to the definition of economics? Which of the subsequent decisions would entail the greater opportunity cost? Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot? Explain
Discuss which Explain how drop in the export sales sets in an ongoing recession using accelerator model.
Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations.
In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
Illustrate what is the company's pretax cost of debt.
Suppose which gross private domestic investment is $800B also the government is currently running over a $400B deficit.
Roma was a schoolteacher and earned $40,000. But she enjoys creating cartoons, so at the beginning of 2003, Roma quit teaching.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Illustrate what technologies are utilized. Describe the competitive environment within the industry. Is there a dominant firm.
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
What is the output of each firm if they collude to produce the monopoly output. What profit does each firm earn with such collusion.
Unusually good weather which improves crop production also a major oil discovery are examples of unexpected supply shocks in the economy
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
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