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Q1. Why do proponents of active policy recommend government intervention to close an expansionary gap? Briefly discuss.
Q2. Why might an active policy approach be more politically popular than a passive approach, especially during a recession?
Q3. Some economists argue that only unanticipated increases in the money supply can affect real GDP. Explain why this may be the case.
Q4. What is the policy credibility and how is it relevant to the problem of reducing high inflation? How is credibility related to the time inconsistency problem?
Suppose at the current level of labor used, the MRP = $100 and the MFC = $50. Elucidate the maximize profits
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
Do protectionist policies benefit producers, consumers, workers, or the government
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Research where you would find the U.S. international trade policies and their history as they apply to various industries.
Someone proposes to buy the farm from you for $1 million. Would you make more by selling the farm or keeping it
Calculate the price elasticity of demand for Newton's Donuts
Dependency theory characterizes countries as being either in the center or on the periphery
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
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