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Using your knowledge of production function, discuss how low interest rates may have helped economic growth. Why do you think we still have high unemployment? Why aren’t wages increasing? If you were to advise policy makers on economic policies, what would be your advice? Do you agree with the Fed’s quantitative easing policy?
1. 1) In the classical, full employments, long run, WHAT makes the demand for the economy's output (also called "E") equal to the supply ?
2) Using the long run classical saving and investment graph, how real income Y changes when there is a rise in business confidence?
3) Show (graph) and explain what is meant by the term "crowding out"
How will this fee affect the profit maximizing price and quantity? How will this fee affect the monopolist's profit?
q1. tom and jack are the only two local gas stations. although they have different constant marginal costs they both
elucidate how many units of fish could it now consume along with the 80 units of imported wheat.
In a certain kingdom, the demand function for rye bread was q = 381 − 3p and the supply function was q = 5 + 7p, where p is the price in zlotys and q is loaves of bread. The king made it illegal to sell rye bread for a price above 32 zlotys per loaf...
Assume a banking system with many banks. The reserve ratio in all banks is 16 percent and excess reserve is held in the banking system (i.e. banks are all "loaned up"). Sam sells gis government bond to the Fed. Sam received $3,000 in cash, which he ..
Talk about why a government may want to impose price control. But in this case, does the Mugabe government achieve its intended purpose
Executives estimate, for the first year, that they will have gross revenues of $500K, total costs of $300K, $30K in tax deductions and a one-time start-up credit of $8K. What will the company pay in income tax?
Consider three households (i = 1, 2, 3) each with preferences ui(xi , G) = xi × G where xi is the consumption level of private goods by household i and G is the level of public good. Private good costs 1 and public good costs 10. Individuals have inc..
As reserve requirement increases, money creation increase. The money value and price level are in inverse relation. The nominal interest rate is related to inflation. An inflation tax is tax put onto inflation. Government expenditure belongs to the a..
Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 2, and the cross price elasticity of demand between good X and Y is -5. Determine how much the consumption of this good will change if:
One morning, you are the first caller to identify a song contest hosted by a local radio station. As a prize, you won a free concert ticket worth $50. Unfortunately, the concert is the same night that you have to work at your $10/hour job. If you wen..
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