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The SPENDLAND's GDP and debt last year was $4000 billion and $2000 billion, respectively. This year, the government revenue is $800 billion and the goernment expenditure is $1000 billion. suppose the interest rate payable on government debt is 10%
1. What is the debt-GDP ratio for last year? this year?
2. How much did the debt-GDP ratio change?
3. Explain why the debt-GDP ratio changed?
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..
You are a pharmacist in a small town. Explain how can you use this information to your advantage.
Explain why the labor demand curve slopes downward. Recall that there are 2 reasons.
Assume that Jimmy Cash has $3,100 in his checking account at Folsom Bank and uses his checking account card to withdraw $310 of cash from the bank's ATM machine.
Suppose the following data about the demand for goods and services. All variables are in billions of dollars. Suppose that potential level of output is $12,000 billion. Use the above data to calculate the size of the output gap?
Describe the difference in executive decisions concerning pricing, product design, and advertising between a company that exists in a perfectly competitive market and a company that lives in a monopolistic competitive market.
How do protectionist trade policies affect a government's wealth and fiscal policy?
Find the depreciation rate of a house sold at $250 in 2015 and the same house sold at $200 in 2016?
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
Smith can produce with or without a filter on his smokestack. Production without a filter results in greater smoke damage to Jone. The relevant gains and losses are as follows: Gains to Smith: $200/wk with filter; $245/wk without filter.
a) Illustrate the current equilibrium in a two-part diagram with the entire market in one part and an individual pretzel stand in the other. b) Now the city decides to restrict the number of pretzel-stand licences, reducing the number of stands to..
Use the production and price information in the table to calculatereal GDP for 2009, 2010, and 2011 using 2010 as thebase year.What is the growth rate of real GDP from 2009 to2010 and from 2010 to 2011?
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