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1. According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.
2. Suppose that the government pursues expansionary fiscal policy by lowering taxes. What are the expected demand-side effects? What are the possible offsets to the demand-side effect? How might supply-side effects change these results?
3. Explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.
4. What are the direct and indirect effects of an increase in the money supply?
5. What are the effects of a tariff on a good?
For a perfectly competitive syrup producer whose average total cost curve does not change, an economic profit could turn into an economic loss if;
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.
Suppose the following equations discuss a hypothetical economy where both the price level and interest rates are fixed.
When you buy a set of speakers, Best Buy asks if you would like to purchase insurance for your speakers. Assume that paying for new speakers for customers who listen to music at a reasonable level (thus minimizing damage) costs, on average, $150, ..
as an employee of the world bank you have been asked to research one economic concern in a south american country and
1. If a patent owners are compensated with monopoly profits from transfered consumer surplus, consumers will be compensated by greater product variety and technological innovation, while the alternative is lower prices, fewer new products, and muc..
Specifically, what would be the effects on employment and unemployment given the actions taken by the Fed? Respond to at least two of your classmates’ postings.
Consider the situation of the concept of Green energy policy and conservation. What is the issue at hand and what are they hoping to do? Explain. What are the anticipated benefits of using the electric cars and the new florescent light bulbs?
Suppose Fred deposits $8,000 in cash into his checking account at the Bank of Bonzo. The Bank of Bonzo has no excess reserves and is subject to a 5 percent required reserve ratio.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
For the internet opportunity she anticipates costs for land labor and capitol of$ 3,250,000 per year as compared to revenues of $3,275,000 per year. Should she quit her current job to become an entrepreneur? If she does not quit her current job wh..
What is the "current macroeconomic situation" in the U.S. as of 2013 (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time
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