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Suppose that the US current account deficit must be reduced. Explain in terms of CA ≈ (S – I) + (T – G) what must be done to reduce the current account deficit. Why will this be difficult? (Hint: It may be helpful to think about the household that has been living beyond its means, perhaps by borrowing on credit cards).
What are your predictions for the US economy over the next two years? Use the macroeconomic models you have learned to present a reasoned answer. Explain your assumptions clearly.
Think of another good that you have purchased recently Be specific (e.g. is it breakfast cereal in general or Cheerio’s cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Would ..
Proponents of zero inflation argue that even mild inflation (1 to 3 percent) reduces the economy's real output. Do you agree or disagree with this assessment? Why?
firm's marginal cost curve crosses marginal revenue curve at an output level of 1,000 units. Illustrate what is firm's current profit. Illustrate what is likely to occur in this market and why.
Explain how a focus on core competency could be compatible with an expanding vertical boundary; with an expanding horizontal boundary
Budweiser (now owned by a Belgium based beer company called In Bev), Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over$250 million a year on television advertising campaigns, promoting their beer brands. D..
If a competitive firm hires another full-time worker, total output increases from 100 units to 110 units per week. Suppose the market price of output is $25 per unit. Illustrate what is the maximum weekly wage at which the firm would hire that add..
Credit Card issuer have culture that focus on growth by targeting financially strapped people. Assume that you are a member of congress, what would you do? Create legislation that does not allow credit-card issuers to raise interest rates for those w..
Illustrate what are the effects of awards paid to heirs of workers judged to have been worked to death in Japan on wages
q1. a television station is considering the sale of promotional dvds. it can have the dvds produced by one of two
Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding
If B accepts, the division is implemented. If B rejects, each player obtains their outside option. Assume that if a player is indifferent between a proposed dividsion and his or her outside option, then the player accepts the division.
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