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What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer. How might contractionary and expansionary fiscal policies affect your organization?
Suppose that there are two stores, A and B, that sell homogenous good. Suppose that the two stores are located on the real line: store A is at 0, while store B is at 1. Derive the demand functions for the two stores
Assume you plan to quit your job in 6 weeks because you have saved enough money to move to California where you can indulge your interest in rock climbing.
Show the basis for our construction of the output DEMAND function. As an intermediate step explain the construction of the consumption function (as a function of output) and how this becomes a key component of the output supply function.
My utility for cookies C and milk M is u(C;M) = C1=3M2=3. Every week I have wealth w = $8 to spend on cookies and milk. Last week, prices were pC = 1; pM = 1; this week there is a big sale on cookies so prices are pC = 1=2; pM = 1.
Illustrate what policies have been proposed or implemented to address the problem your describe.
Explain how would an increase in the present rate of oil affect the time of development if the rate of price increase in the future remains at 2%.
In the late 1990s a growing number of economists argued world policymakers were focusing too much on fighting inflation. Economists also argued the technical level of potential output had risen. Show their argument using the AS/AD model.
Suppose that you have following open economy where C = 10 + 0.8(Y-T); I = 10; G = 10; T = 10 and imports and exports are given through IM = 0.3Y and X = 0.3Y* respectively
Discuss one or two examples of media that have influenced your desires or affected your consumer choices and consumer behavior influenced by advertising.
Two identicial countries Alpha and Beta can be described by the IS-LM model in the short run. The governments of both countries cut taxes by the same amount. The Central Bank of Alpha follows a policy of holding a constant money supply.
A major cereal manufacturer decides to lower prices from $3.60 to $3.00 per 15-ounce box. If quantity demanded increases by 18 percent, determine the price elasticity of demand?
Illustrate what is the optimal cost that the dealer should sell the tire to the customer.
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