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Will it be easier for tax payers to pay off public debt if the money borrowed by the government is spent on education and public infrastructure, or if it is spent on unemployment insurance?
Can the government cause a recession and then limit the strength and speed of the economic recovery by trying to redistribute income on the basis of fairness?
A monopoly faces a demand curve (in $) for its branded product described by: Fixed costs are equal to $10. There is no other cost information. What is the profit maximising price and quantity produced?
Will each of the following transactions be included in GDP for the United States? Explain why or why not
Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices, and why? What do you think the elasticities are in the flower business? Use graphs and hypothetical tables to support your answer.
Aspects of fiscal policy Suppose the economy had been producing at natural real GDP but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to natural real GDP? In the precedi..
The Venezuelan bolivar has been steadily depreciating against the US dollar, but the government wishes to stop the depreciation. What must the Banco Central de Venezuela do to stabilize the exchange rate? Is there a limit to how much it can intervene..
Assume that the short-run cost and demand data given in the table above confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Refer to the above table and information. If the firm sells 3 units..
This question uses the general monetary model, where L is no longer assumed constant.
Assume marginal costs are rising at all levels of output. If profits are maximized by a firm, whether monopolistic or perfectly competitive,
Suppose that Elsa's preferences over baskets containing gasoline (good x), and food (good y), are described by the utility function U (x; y) = xy + 100y. The marginal utilities for this function are, MUx = y and MUy = x + 100: Use Px to represent the..
The empirical demand function for good X is estimated in log-linear form as ln Qˆ = 11.74209 – 1.65 ln P + 0.8 ln M – 2.5 ln PY where Qˆ is the estimated number of units of good X demanded, P is the price of X, M is income, and PY is the price of rel..
What are the equilibrium price and quantity. If demand increases to D', what are the new equilibrium price and quantity. What happens if the government does not allow the price to change when demand increase.
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for her view that inflation is not a major problem for an economy.
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