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What would happen if no one tried to manage the business cycle? What role do you see for the executive branch of the US government managing the business cycle? How does fiscal policy work? What are its limitations?
Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6. What is the slope of the budget constraint? At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.
Discuss how economic, political, and social changes will impact growth in the region. Write a short paper summarizing your findings.
Describe the Stolper-samuelson theory of trade. How does it differ from the factor endowment model? What are its predicted effects on wage-inequality in (a) industrialized countries that are capital abundant and (b) developing countries that are labo..
Due to limited borrowing options, the government may ask the central bank to print money. We also learned that the real seinorage revenue of the government depends on inflation and real money holding of the public, that is R= \prodM/P?. Explain the c..
What is your reaction to the world of Lucy and Ricky as presented in "I Love Lucy" ? Lucy is a natural character for this era of television, but Ricky was considered somewhat risky because of his birth and background. What is your opinion of his port..
How much money was deposited each year for 5 years if the account is now worth $100,000 and the last deposit was made 10 years ago? Assume the account earned interest at 7% per year.
Suppose you and your roommate have started a bagel delivery service on campus. List some of your fixed costs and describe why they are fixed. List out some of your variable costs and describe why they are variable.
You are the manager of a monopolistically competitive firm. The inverse demand curve you face is P = 50 – 4Q. Your cost function is C(Q) = 10 + 2Q. What level of output should you produce to maximize profits? What is your profit and what will happen ..
The output, revenue, and profits for a firm under bad times for a firm in isolation and in a pooled labor market. b) the output, revenue, and profits for a firm under good times for a firm in isolation and in a pooled labor market.
Given equipment price, E , what is the price of service in terms of E? Competition in the equipment market, however, drives the equipment manufacturer's long-run profit to zero. What is the price of equipment?
His uncertainty about total sales of the book can be represented by a random variable with a mean of 30,000 and a standard deviation of 8,000. Find the mean and standard deviation of the total payments he will receive.
Consider a market characterized by the following demand and supply curves: Qd = 1600- 20p and Qs = - 900 + 30p. Calculate the change in producer's surplus. Calculate the deadweight loss of the price ceiling.
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