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Some politicians have suggested that the U.S. enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the enconomy experienced a servere recession.
Suppose that last year the equilibrium price and the quantity of good X were $20 and $10 million pounds. Because of strong demand this year equilibrium price and quantity of good X are $30 and 15 million pounds. Assuming that the supply curve of g..
A newly established Internet Cafe is seeing to expand its operations. What would happen if the predict to open 208 stores each year is wrong?
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
Illustrate what are the major macroeconomic goals of all societies.
Breifly explain the effect of an increase in money supply.
Suppose a consumer has $150 to spend on food and clothing. Food costs $4 per unit and clothing costs $5 per unit. The consumer's utility function is U(c,f) = f^2c. a. Give an equation for the consumer's budget line. b. Give a formula for the consum..
Elucidate the dispute resolution options available to Bobbie Sue and Suzy Q and the primary differences between each option.
Using aggregate supply and aggregate demand examine, describe what effects, if any, the following changes have on each nation's Price Index and real GDP.
Show the PBC balance sheet. What is PBC's target reserve ratio and how much "bank capital" does PBC currently have? Explain.
Frank owns a soda fountain and sells milkshakes. he sells 50 milkshakes per day for $5 each. his daily cost is $290, of which $30 is fixed cost.
Where Qt represents the quantity of widgets sold per period t, Pt represents the price of widgets during period t, and Mt represents average household income of customers during period t. You are also given the following information about the regre..
Elucidate are the characteristics of the market for lemons.
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