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Each year since winning control of the House of Representatives in the 2010 election,Tea Party Republicans have argued that we need to immediately initiate sharp reductionsin government spending and entitlement programs and rapidly move towards a balancedbudget, (although they have never actually produced a budget proposal in which taxrevenues would match government spending plus entitlement transfers). ManyDemocrats, while arguing that tax rate increases on high income earners need to be partof the any deficit reduction program, have agreed that we need to initiate budget deficitreduction now.
A) What is the argument against attempting to balance the Federal Government budget rapidly at the present time via either deep cuts in Federal Government spending or sharpincreases in federal income tax rates?
B) Does this argument imply that budget deficits don't matter in the long run? If not, whymight the impact of large deficits predicted in the long run under current tax andspending programs be different than the impact today? Explain.
Which county has an absolute advantage in the production of fruit? Timber?
Suppose you know that Canada's GDP in 1999 was $900 billion, and Canada's GDP in 1933 was $9 billion. What judgment about the change in the economic well-being of average Canadians could you make? Explain.
Where the independent variables are respectively: P, price of McBurger’s burgers, PC, price of competitors' burgers, Y, per capita income, and A, McBurger’s advertising budget.You observe that competitors have, on average, priced their burgers at $3...
Empirical studies reveal a positive correlation among ethical conduct in a corporation and job satisfaction.
At a product price of $56, will this company produce in the short run? If it is preferable to manufacture, what will be the profit-maximizing or loss-minimizing output?
What is the difference between the Federal Reserve's "discount rate" and the "federal funds" rate? Why is the discount rate in the US not as important in financial markets as the federal funds rate?
If we assume that all firms in a perfectly competitive constant cost industry are identical, we conclude that, in the long run, product price will exactly equal the firms' minimum average total cost. Explain why this is true using supply and deman..
So explain how popsicles will be sold every day in the short run if the price rises to $2 each? In the long run, if the price rises to $2 each.
Compute the abnormal return of Stock Z if the market price is $13.68, the risk-free rate is 4 percent, the return on the marketplace portfolio is 10 percent.
There are accurate statments about the debt problem in LCDs EXCEPT that is in some countries, debt is greater that GDP or else.
Compute and interpret the compensating and equivalent variations for this tax.
Draw a real expenditures curve on a graph showing a recessionary gap. Explain what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this s..
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