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Q1
The economy will contract (shrink) if leakages exceed injections. Do you agree with this statement? Why or why not? Q2
Describe the relationship between unemployment and real and nominal wages. Which is more important and why? What effects would either an increase or decrease in unemployment have on wages?
Q3
Some economist believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner? Why or why not?
Q4
Why is universal acceptability such an important characteristic of money? What other characteristics can you think of that might be important to market participants? What do you think might happen if we go away from money to a total electronic payment system? Discuss.
Q5
Do you advocate an active or passive policy approach? Why? Why might an active policy approach be more popular than a passive approach, especially during a recession? Discuss
Review and reflect on what you learned in the past 8 weeks. What is the most practical and easily applied lesson you learned? What was the hardest to grasp? Why? What else do you need to know about Macroeconomics?
You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q = 150,000 - 1.5P, what price should you charge in order to maximize revenues from sales of the Highlander?
An economist's use of the term "rent" differs from everyday usage in that in the economist's understanding, economic rent is the price paid for the use of all resources that are completely variable in supply. includes any security deposit that mus..
The following item appeared in a major daily newspaper: does this observation in fact violate laws of supply and demand.
The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M.
Imagine knowing with certainty that interest rates will not change over the next five years. Identify how this fact would change the behavior of a business of your choice.
Could you please explain fully the difference among an increase in demand and an increase in quantity demanded, by giving an example of what would cause an increase in quantity demanded and please illustrate the effect of such an increase with a ..
What is opportunity cost of producing a car in Canada? What is the opportunity cost of producing the tonne of wheat in Canada? Describe the relationship between the opportunity costs of two goods.
Airway Express has evening flight from Los Angeles to New York with average of 80 passengers and return flight the next afternoon with average of 50 passengers. Should the airline remain in business?
Suppose the economy is on a balanced growth path in the Romer model, and then, in the year 2030, research productivity rises permanently to z ? > z. a) Solve for the new growth rate of knowledge and yt b) Make a graph of yt over time (on a ratio s..
How is duration related to the interest elasticity of a fixed-income security? What is the relationship between duration and the price of the fixed-income security?
If Kevin agrees to an $18,500 alimony payment, what is the after-tax cash flow for Kevin and Elizabeth? By how much does their cash flow improve over the proposed $15,000 payment?
Utilizing the midpoint formula, elucidate the price elasticity of demand for Coke at these prices.
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