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The Future 2055 The U.S. economy is at full employment. President North West is spending billions of dollars on military equipment in the U.S. He is also attempting to carry out his promise to put a man on Mars by the end of the decade. He is considering increasing government spending by increasing the space programs budget to reach this goal. You are one of his advisors.
a. Using the AD/AS model graph the economy at full employment. Assume sticky wages.
b. Redrawing the graphs show the economic implications of increasing govern- ment spending on the space program.
c. With words describe what would happen in the short run to prices, output, the interest rate, and employment.
d. Recommend a policy that corrects any problems that spending on Mars mis- sions may be causing in the U.S. economy and show using graphs how this policy helps?
Discuss how organisations design and build services to attract new and existing customers to buy their services. Refer to the research you have presented previously in your research report.
What are the three tools the Federal Reserve uses to change the money supply and insert rates in the economy? Which of these tools is most important and why?
Governments have sometimes not remembered about elasticity when they formulate tax rule. A few years before the city fathers in Washington DC wanted to raise revenues so they raised gas tax by ten cents a gallon.
Construct the Coutrnot profit function. Differentiate this function and solve for the reaction functions of firm one and firm two.
If the interest group theory applies to hospitals, explain why does not it also apply to nursing homes? Would a doctor owned, for profit hospital be as attractive to physicians as a nonprofit hospital?
Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.
Assume a company has the following demand equation, Q = 1,000 - 3,000P + 10A, where Q = quantity demanded, P = product value, and A = advertising expenditures
An interesting example of strategic behavior comes from the 1997 article regarding Microsoft's investment in Apple (New Straits Times, 1997). The article is included in Required Readings list.
Kidney's are not allocated by markets. Discuss the pros and cons of switching to a market for kidneys. Currently, people can volunteer to donate one of their two kidneys,
A competitive market is intended to result in improved efficiency, though it will not necessarily improve equity. That is, a competitive market might encourage efficient production but may not necessarily result in a redistribution of wealth
Assume that all firms in a perfectly competitive market structure are in long run equilibrium. The demand for the company product rise.
Suppose you manage an agency that provides Meals on Wheels to infirm elderly residents in the county. The agency operates three kitchens. Each kitchen is producing one-third of the total meals every day.
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