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Please explain in three well-structured paragraphs the basic principles of the New Keynesian Economics and how it addresses perceived limitations to classic Keynesian theory.
What happens with no diminishing returns? Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Draw the Solow diagram in this case. What happens to the growth rate of per capita GDP over..
The Dolly Madison Inc at Emporia estimated the following elasticities for a special type of doughnuts: price elasticity EP = 2, income elasticity EI = 1, and cross elasticity EXY = 1.5, where X refers to doughnuts and Y to bagels. Next year, the firm..
The Financial Advisor is a weekly column in the local newspaper. "I need a new car that I will keep for 5 years. I have three options. I can (A) pay $19,999 now, (B) make monthly payments for a 6% 5-year loan with 0% down, or (C) make lease payments ..
The table below shows the payoff matrix for a game between Toyota and Honda, each of which is contemplating building a factory in a new market. What is the cooperative outcome in this game? Is it likely to be achievable? Explain. What is Honda’s best..
Two people from the military, General Equilibrium (player 1) and Major Inefficiency (player 2), have been stranded on an island after a shipwreck. General Equilibrium was able to salvage 50 bags of Spinach (X1) and 50 pounds of rice (Y1) from the shi..
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Onc..
Who has the same preferences as Bill?. Who has the same indifference curves as Bill? Explain why the answers to (a) and (b) differ.
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
The first effort at converting “republican ideology” into a real government resulted in the Articles of Confederation. What were the strengths/weaknesses of this government? Why did the Founders create this government? After only a decade America’s l..
q. a county is considering using a piece of park land for one of two alternative recreation projects. project s would
Approximately how much would it cost to insure the currently uninsured? Explain which costs are included and excluded in the estimates. It has been said that employer –based insurance is obsolete .Give an argument on each side of the question. Descri..
Find three (3) individuals from the population that you are addressing. If you have a broad topic, find someone experienced in the field. Use the information you have gathered thus far to guide your conversations.
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