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Strategy to bring the economy out of recession
Suppose that you are the chief economic advisor to the president of the U.S. You are asked to propose a strategy to bring the economy out of recession. Your goal is to avoid inflation and yet bring the economy to full employment as rapidly as possible. What will be your main strategy? Why? Use examples and give reasons to support your strategy.
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
Suppose the marginal expense of hiring another worker is $150 and the marginal expense of hiring current workers for an extra hour is $10.
Is the company charging the optimal price for the product. Demonstrate how you know.
Explain how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
Cartels are a form of anti-cooperative activity. Critically examine the factors that may facilitate the establishment, operation and detection of cartels.
A no of empirical studies of automobile demand yielded the subsiquent estimates of income and price elasticities
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
What are the firm's fixed costs? What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10.
Analyze the relationship among fiscal and monetary policy in an open economy.
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