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Recently, there has been a spate of instability throughout the world. The immigration crisis in the EU, and the political instability in parts of the Middle East.
a. Explain intuitively why the NCO curve slopes downward. Begin your explanation, by considering a decrease in the real interest rate.
b. Using the three panel diagram for the US, explained the effects of the political instability on the US economy. Determine what happens to the following: the real interest rate, national savings, investment, NCO, E, exports, imports, and net exports. [Note: If you cannot unambiguously determine what happens to any of the variables listed, clearly state that the effect is ambiguous, and discuss under what conditions the variable increases or decreases.]
Assume the total value of paper to society ( measuring willingness to pay) is given by the expression. Additionally there are pollution damage costs for which the external cost can be described as.
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Suppose that Congress passes a constitutional amendment requiring the U.S. government to maintain a balanced budget at all times. Thus, if the government wishes to change government spending, it must always change taxes by the same amount, that is "G..
Find out the Nash equilibrium prices of the procedures at the hospitals. Do the merger result in price increases.
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For each category, indicate which condition is associated with higher rivalry among competitors.
Firms that had virtual monopoles, that is control over at least 80% of industry production, because of control over an essential resource include all of the following except the - The marginal revenue that would be derived from the production of a ..
Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country’s government on (i) the home country’s consumers of Y, (ii) the home country’s producers of Y, and (iii) the home gover..
Explain how the indifference curve and budget line apparatus are used to derive a consumer's demand curve.
He plans to marry at about the end of year 6 and will skip the investment contibutions that year. How far below or above his $300,000 goal will he be?
What is elasticity of demand for hamburgers at equilibrium. What are consumer surplus and producer surplus at equilibrium.
When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases.
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