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an economist might say that collage and universatys "produce" education, using facilty members and students as inputs. According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one found in this chapter to represent the sector of the economy devoted to collage education: collages and universities represent firms, and house holds both consume education and provide facilty and students to universities. What are the relevant markets in this model? What is being bought and sold in each direction? what would happen in the model if the government decided to subsidize 50% of all collage students tuition?
How would a regular LM curve be affected if the private sector demand for money balances increased following heightened uncertainty about prospects for bonds?
What countermeasures could it take to prevent the Congress from expanding the money supply and What is the potential impact on the money supply? Suppose the central bank decided that the money supply should not be increased.
As per the Solow model, how would each of the following affect consumption per worker in the long run.
Elucidate what you can do, if the best technology was used to produce the components of the system to achieve the .99 reliability.
Suppose a new deposit to the US banking system of $1000. Assume that all commercial banks have a target reserve ratio of 10 percent and there is no cash drain.
Lets say that as an worker of the World Bank that I have been proposed to research the requires of a country with a particular economic concern.
Elucidate tools are used to accomplish conscious fiscal policy.
What would happen if the tax was paid once only instead and describe the effect of the introduction
The industry will also incur expenses in the amount of $150,000. Explain how many shares must the industry sell to net $20 million after underwriting and flotation expenses.
Elucidate what does it mean to specialize according to one's comparative advantage and trade internationally and an example of a business using this principle.
Suppose which major function of profit is to allocate resources according to consumer preferences
Explain why may a government solution to a marketplace failure worsen the market failure.
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