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In late 2012, the U.S. Treasury sold the last of the stock it purchased in the insurance company AIG. The Treasury earned a profit on the $22.7 billion it had invested in AIG in 2008. An article in Wall Street Journal noted that: "This step in AIG's turnaround, which essentially closes the book on one of the most controversial bailouts of the financial crisis, seemed nearly unattainable in 2008, when the insurer's imminent collapse sent shockwaves through the global economy."
a. Why did the federal government bail out AIG?
b. Why was the government bailout controversial?
c. Does the fact the federal government earned a profit on its investment in AIG mean that economists and policymakers who opposed the bailout were necessarily wrong? Briefly explain.
During the business cycle, the period between the point at whichoutput reaches a high anthepoint at which it reaches a low is called - equals the market value of all final goodsand services produced in an economy, stated in the prices of aspecific b..
What was the Neolithic Revolution. Explain
Graph a market with a tax where firms pay the majority of the tax. Graph the long run equilibrium for perfect competition. Using a similar average cost curve, graph the long run equilibrium for monopolistic competition. Compare the results.
What does sampling distribution mean and how is a sampling distribution of the mean obtained?
Who are maximizing their rational choice, the Japanese or the Americans and which of the three forms would Adam Smith agree is the best choice?
chistorically shifts towards a more expansionary monetary policy have often been associated with increases in real output. can an expansion in the money supply increase real output and employment
An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.
A government has decided to phase out its antipoverty program support payments more slowly to help the near-poor become self-sufficient. One criticism about this policy is likely to be
If the consumer continues to buy 5 units of cake, what is the largest number of hamburger that he can afford?
Summary of the news story and explain how it relates to the material
If the federal government enacts a tax on a monopoly, how would expect the additional tax to affect the following Output produced by the monopoly or else.
You are an employer seeking to fill a vacant position on an assembly line. Are you more concerned with the average product of labor or the marginal product of labor for the last person hired? If you observe that your average product is just beginn..
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