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Topic: There are pros and cons if policymakers use monetary and fiscal policy to stabilize the economy. Explain the main arguments in favor of economic stabilization. Explain why policy lags could make stabilization policies counterproductive.
Topic: One of the widely debated issues in macroeconomic policy is related to government budget, which involves government spending and taxes. Should the government balance its budget? If you think it should, what steps do you suggest that it take to balance its budget? If you wished to reduce the budget deficit, how would you advocate that be accomplished? Topic: There is a general consensus that the current tax laws in the USA are not effective (efficient). However, there is a debate on how the tax laws should be reformed. Should the tax laws be reformed to encourage saving? Is the tax law the major impediment to increasing private saving in the economy?
What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm 2 continued to charge $8?
The Congressional Budget Office (CBO) on August 25, 2009 estimated that the accumulated deficit from 2010-19 will approximate $7.137 trillion.
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve
Give at least three explanations of why economic reasoning would argue that this is to be expected.
What is the net present value of this proposed project? If efficiency was the only objective for making the decision and we have fully accounted for all costs and benefits would you recommend the project go ahead or not?
Illustrate what do you think about the goal of the IMF's aid to distressed countries. What has been the controversy surrounding the IMF austerity programs.
Suppose the U.S government decides that the incomes of dairy farmers should be maintained at a level then how much surplus milk will be produced as a result of this policy.
Suppose an individal who moves from Asia to the United State and brings with him life savings of $40,000, which he deposits in a US bank.
Calculate the steady-state growth rates of capital, output, saving and investment, and consumption - calculate the steady-state growth rates of capital per worker, output per worker, saving and investment per worker, and consumption per worker
What factors make the Fed independent from politics? Why is there so much political pressure on the Fed, despite its independence - How does the Fed work to protect itself from political pressure?
Describe the industry equilibrium price/output combination both graphically and algebraically. Calculate the level of excess supply (unemployment) if the minimum wage is set at $7 per hour.
Why does the assumption of independence of risks matter in the examples of insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively corr..
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