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The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government?
Check all that apply. Businesses make investment plans many months in advance. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates. The current tax system acts as an automatic stabilizer. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Which of the following are examples of automatic stabilizers?
Check all that apply. Unemployment insurance benefits Personal income taxes Corporate income taxes
identify if the demand or the supply curve is misplaced and whether it is too far to the left or too far to the right.
Calculate market demand and market supply. How this affects golden rule of capital per worker and golden rule of savings rate in so low model and explain your results.
Boris budgets $9 weekly for his morning coffee with milk. He likes it if it is prepared with 4 parts coffee, 1 part milk. Smith likes cashews better than almonds and likes almond better than walnuts.
Draw and show the change in the PPF when an outbreak of avian flu sickens millions of agricultural and industrial workers.
Why might governments nationalize firms and do they have added advantage or unfair one over the private owned firms? What are the different forms of terrorism and how can international managers meet this challenge?
In the short-run, if a firm has decreasing returns, does it have increasing, constant, or decreasing marginal cost? Explain. What about if it has constant returns? Increasing returns? Explain.
We have two politically opposite views about conduct of fiscal policy. ------are willing to close the GDP gap via----- and -----favor----
Identify a market which you feel is perfectly competitive. The firms in this structure are considered price takers, are the firms in the market you chose all selling their product at the same price? Why or why not?
For a product, at a price of $3, quantity demanded is 60 units and at a price of $5 quantity demanded is 40 units. Using midpoint formula, calculate value of price elasticity of demand.
One way to help establish new technologies is to employ something called a "quality circle". What is this and how do companies use them to help implement new technologies and stay on top of changes in the work environment?
Suppose an environmental regulation requires all polluters to reduce emissions by 50%, even though the cost of pollution control differs widely from one polluter to another. Why might this be inefficient, using the definition of efficiency developed ..
Assume that a captured stag is shared only by the hunters who catch it. Under each of the following assumptions on the hunters preferences, find the Nash equilibria of the strategic game that models the situation. Each hunter prefers the fraction 1/n..
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