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(i) Critically analyze the short-term and long-term effects of a large budget deficit and public (national) debt. In your answer, provide an explanation of what the public debt is and how it can be financed. You should also critically evaluate the various measures that are usually recommended for reducing a budget deficit and national debt. (This question may be answered in light of the recent events and economic situation in countries such as Greece, Cyprus, Portugal and Spain.)
(ii) Some people (especially economists) argue in favor of international free trade while others favor protectionism. Critically examine who gains and who loses from free trade and protectionism. Overall do you think that international free trade is a good idea?
historically shifts towards a more expansionary monetary policy have often been associated with increases in real
What is the internal rate of return on this investment? Assume that the cab is paid for at the beginning of the ?rst year, but that the annual cash ?ows happen at the end of the year.
If a regulatory commission establishes a price with the goal of achieving allocative efficiency, what would be the price and output What would be the firm's profit or loss d. If a regulatory commission establishes a price with the goal of allowing..
IKEA is a Swedish home furnishings retailer. An official Indian agency supports IKEA opening 25 stores in India. Demonstrate the impact of IKEA's entry into the Indian home furnishings market.
With a series of benefit cuts across many firms throughout the economy, some economists argue that nominal wage rates, a major cost of inputs for firms, have been decreasing.
We're looking at the market for cat food. When the price is $10, the quantity sold is 1000 bags. When the price drops 10%, the quantity sold increases 30%.
Assume the market for wooden toothpicks is competitive. Earlier this week, in a nationally published study, 4 out of 5 dentists enthusiastically endorsed the benefits of toothpicking for dental health
the nation's largest consumer electronics retailers began a nationwide television advertising campaign kicking off its "Take It Home Today" program, which is designed to encourage electronics consumers to buy today rather than continue postponing ..
Write a grant proposal aimed at receiving funding for a programme that you expect to run in anarea (village) of a developing country of your choice.
A $90,000 investment is made. Over a 5 year period, a return of $30,000 occures at the end of the first year. Each successive year yields a return that is 10 percent less than the previous year's return. If money is worth 5 percent, what is the equiv..
to provide access to medical care to Kaiser workers in remote locations where medical services were in short supply,to slow the rate of growth in medical spending for Kaiser employees, as a group model HMO
the total output and price produced in an oligopoly market characterized by a dominant firm and a fringe. SF represents the supply curve of the fringe, D is the market demand curve, DRES represents the residual demand curve of the dominant firm.
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