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Often the US economy is criticized by being on a "consumption glut" and not saving enough for the future. Using the PPF analysis, explain what this means, the consequences of this behavior with regards to economic growth, and what the government could do to rectify the problem.
sandy sue sanders can take a job paying $10,000 a year when she graduates from high school, or she can go to college and pay $9,000 a year for tuition. Measured in dollars, Illustrate what is her opportunity cost of going to college next year.
The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table.
Assuming that all buyers received the credit, estimate the own cost elasticity of demand as well as well as own cost elasticity of supply.
Illustrate what is the fed funds rate in the banking system. Explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
All else equal, what is short-run effect of an increasing US output Y on US interest rate. All else equal, what is short-run effect of an increasing US prices P on US interest rate.
Write down equation that can be solved for yield to maturity of this bond: that is, equation that equates Current value of bond payments to cost of bond. Estimate Current value of bond when interest rate is 8%.
Explain why do equity holders care more about ROE than about ROA. If a bank doubles the amount of its capital and ROA stays constant, what will happen to ROE.
It is a hot day also Bert is thirsty. Here is value he places on a bottle of water.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Suppose the legislature enacts minimum wage legislation in order to provide workers with a "living wage.
Describe who bears relatively more of the burden of the tax, producers or consumers and illustrate your answer with a diagram.
According to national income accounts, investment always equals savings in a closed economy. only in equlibrium would savings be equal to investment. hence, we are always in equlibrium. true or false.
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