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a. Describe the use of Gross Domestic Policy (GDP) to measure the business cycle.
b. Describe the roles of government bodies that determine national fiscal policies.
c. Explain the effects of fiscal policies on the economy's production and employment. How do changes in government spending and taxes positively or negatively impact the economy's production and employment?
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
Draw marginal revenue function for this firm. What is the profit-maximizing price for this firm? On the graph describe the area, this represents the net loss to society resulting from the monopoly power conferred by the patent.
Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
"A substantial number of relatively unskilled persons reported that they can't find work. At the same time, there're many unfilled jobs for relatively skilled people. Apparently, the problem is that there're more unskilled peop..
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
An essay on Market imperfection associated with negative externalities.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
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