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Suppose that you are the chief economic advisor tothe president of the U.S. You are asked to propose a strategy tobring the economy out of recession. Your goal is to avoid inflationand yet bring the economy to full employment as rapidly aspossible. What will be your main strategy? Why?
Can you please provide an example of the market where government has imposed a price ceiling or a price floor and use demand and supply analysis to elucidate the consequence on that market.
A Wall Street Journal article, "As Fear of Deficits Falls, Some See a Larger Threat," describes the following threat of a high U.S. budget deficit: [T]he investors who finance our deficits by buying Treasury bonds and bills, especially the foreign..
What is the net effect on the money supply in the economy? Show your work. Assume instead that Sammy uses the $10,000 he receives to pay back a loan from Bad Boys Bank. $8,000 goes to repay the loan itself, and $2,000 represents his Interest payme..
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following government policies will move the economy from one long-run macroeconomic equilibrium to another.
A producer of photocopiers derives profits from two sources: the immediate profit it makes on each copier sold and the additional profit it gains from servicing its copiers and selling toner and other supplies. The firm estimates that its addition..
Explain the nation will move toward an international monetary system or fixed exchange rates in the future.
Governments routinely alter their spending patterns to impact the economy, particularly as they relate to GDP growth and unemployment levels. Explain what effect an expansionary fiscal policy would have on the price level and real GDP starting fro..
An rise in a firms expected growth rate would normally cause the firms required rate of return. which of the following statements is most correct.
Most Social Security recipients do not currently pay federal or state income takes on their benefits. Assume the government proposes to tax these profits at same rate as other types of income.
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $150,000 to develop and only $0.5 per unit to deliver to each cell phone customer.
Asume that an individuals inverse demand for wireless services in the greater Atlanta.
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