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1. For Canada, the demand pressures generated by the U.S. tax cut and the spillover effects of increased U.S. defense spending will push the Canadian economy further into an excess demand situation. a. How will the U.S. tax cut and the increased U.S. defense spending influence the U.S. economy? b. What name do economists give to this kind of government action? c. How would this effect influence the Canadian economy? 2. GDP grew at a much faster 4.8 percent rate in the October-December quarter, but analysts said that growth masked some dangerous imbalances that were not present in the first-quarter report. Almost all of the fourth-quarter increase in GDP wound up as unsold inventory sitting on shelves. a. If it doesn't get sold, how could it get counted into GDP? b. Why is this phenomenon described as a "dangerous imbalance"? 3. Budget deficits are sometimes useful to spur consumption and thus encourage investment in business plant and equipment, but more generally they discourage rather than encourage investment because... a. Explain how budget deficits could spur consumption and encourage investment. b. Complete this clipping.
differentiate between positive and negative feedback loops. give examples of each with regard to natural resource
mikes utility for consumption and leisure is ucl c times l so that his marginal rate of substitution between leisure
the net exports effect is the impact on a countrys total spending caused by an inverse relationship between the price
Explain the concept of natural capital. Why is the World Bank concerned about protecting the natural capital of developing countries? How would you characterize the investment climate in India?
You are considering selling your vintage 1969 convertible Volkswagen Beetle. If the car is in good condition, it is worth a lot; if it is in poor condition, it is useful only as scrap. Assume that your car is in excellent condition but that it costs ..
managed care plans tend to lower health care costs yet the level and growth of managed care premiums are similar to
suppose that third national bank has reserves of 20000 and checkable deposits of 200000. the reserve ratio is 10
why do economists prefer to speak of demands arising out of wants rather than needs?explain why economist considers the
What are Economies of Scale? Why is it Significant to understand this concept? How can one's knowledge of Economies of Scale contribute to decision making processes in organizations?
What difference does it make, if any, if technology is moving very fast in the market so that this game proves to be one-time-only simultaneous play?
What is the monopolist's profit maximizing level of output and what is the profit-maximising pricing strategy among the options
The value for F must make Matt simi- larly indifferent: Solving this equation yields Thus, the strategy profile presented is a subgame perfect Nash equilibrium when and Given this equilibrium, let's calculate the probability of Fiona and Matt e..
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