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Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
Discuss and explain the features of the Danish economy and why the Danes overwhelmingly support globalization and job outsourcing.
Explain why you would be more or less willing to buy long-term Air Canada bonds under the following circumstances:
After completing a complex programming project, Melanie is laid off. Her prospects for a new job requiring similar skills are good, and she has signed up with a programmer placement service. She has turned down offers for low-paying jobs.
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate Explain what is meant by a built-in stabilizer and give two examples
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations, and what can government do, if anything
Explain the process or mechanism underlying how a market-based economic system allocates scares resources. Identify how this process might differ from a centrally planned or command economy.
Under certain circumstances, expansionary Fed policy may not have much of an effect on the rate of economic growth. Give a reason why, and explain?
Elucidate what would the elasticity of supply have to be for a food stamp program to increase the availability of food to the poor with no prices increase.
You are considering auctioning a Leonardo Da Vinci original sketch. You entice four bidders to come to your auction. The bidders' valuations of the sketch in decreasing order are $3.0, $2.2, $2.0, and $1.5 (in millions). If you used a second-price..
Assume there are two firms, A and B, buying labor in a market. They each have a constant level of VMP = 15. They face an upward sloping supply curve, W = 2L, where L is the sum of the supply of labor purchased by firm A, LA, and by firm B, LB.
PowerPoint presentation 6-8 slides that explains the main difference between microeconomics and macroeconomics, with an example of each phenomenon, along with a description of a microeconomic decision
If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 1.75, how will looming fears of a recession (expected to decrease consumers’ incomes by 4 percent over the next year) impact the quantity of coffee Sta..
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