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Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? Why? What is the first action you would take as the chairperson of the Fed? Why? Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit and how this affects your policy recommendations. Your discussion should include the Phillips curve and the multiplier and at least three other of the following concepts: Demand and supply of money Interest rates The Phillips curve Taxation Government spending Wages Costs of inflation The multiplier and the tax multiplier The idea of tax rebates to stimulate the economy.
Determine algebraically the equilibrium price and quantity? Suppose that the price to be fixed at $110. Determine algebraically the surplus or shortage that would result? Discuss the differences in elasticity of supply and elasticity of demand?
Illustrate what role does weak financial regulation also supervision play in causing financial crises.
Two goods are complements when a decrease in the price of one good
Real GDP will increase
The market for a box of POG’s is defined by Qd=80-P and Qs=P. Calculate perfectly competitive equilibrium, consumer surplus, and producer surplus. Calculate quantity supplied, quantity demanded, and producer surplus, consumer surplus, and deadweight ..
Think of the ways workers are alienated from the product and process of their jobs. How can these concepts be applied to students and their educations?
Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic.
Suppose that the dollar/yen exchange rate on 1/1/2015 was ¥120/$. One month later, the rate was ¥115/$. If the J-curve theory holds, which of the following situations would occur, all else being equal?
You are an investment analyst. The retail market that you have been investing in, tobacco, has been hit by an increase in sales taxes that are levied on tobacco sellers. Assume that the price elasticity of demand for tobacco is close to zero, whil..
Illustrate what is the minimum price neccessary for this firm to produce any output in the short run.
Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type..
Wildfires destroyed a majority of orange farms, reducing orange production substantially. Explain the effect to the supply and demand curve. Also explain how equilibrium price and quantity would change.
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