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Suppose a government moves to reduce a budget deficit. Using the model developed in class: a) Graphically illustrate the impact of reducing the government’s budget deficit by increasing (lumpsum) taxes on household income. Be sure to label: i. the axes; ii. The curves; iii. The initial equilibrium values; iv. The direction the curves shift; v. the terminal equilibrium values. b) State in words what happens to: i. The real interest rate ii. National saving iii. Investment iv. Consumption v. Output
State whether the following actions will increase or decrease GDP:
If a company gets rid of a coupon does this shift the demand curve or just move a point on the demand curve.
In Illustrate what way do competitive markets have a "natural remedy" for discriminatory hiring practices.
How do global advertising campaigns benefit the company - what are the global advertising strategies of this company? How effective are they?
In a small open economy with a FIXED EXCHANGE RATE, the central bank buys foreign currency in the foreign exchange market to prevent a depreciation of the nominal exchange rate.
adam smith rejected utility as a foundation for value. he illustrates this rejection in his famous diamonds and water
Explain what determines the level of income, employment, output and prices in our economy. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and s..
If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to make up the difference?
Define "Full Employment" and "Price Stability". Define, measure, and discuss why inflation is a problem. Define and measure unemployment.
q1. michael porter mentions two strategy options for competing the differentiation approach and the cost leadership
What is the relationship between the marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the RC model.
If the Fed instead maintained the money growth rate from part a, what is likely to happen to inflation D. Which policy do you think is better in the short run? Which is better in the long run?
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