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1. Describe the role played by expansion in the government sector (funded by budget deficit and public borrowing) in changing prevailing levels of unemployment and GDP. Your exposition should be based on sound economic principles and should have appropriate graphs (like aggregate demand and aggregate supply).
2. Describe how sustained budget deficits can lead to interest rate increases and how that might lead to crowding out effect. Do you think that an expansion in the government sector (funded by budget deficit and public borrowing) is good for the savers? Carefully elaborate your argument and provide appropriate graphs wherever you can.
3. Describe how an increase in the interest rate may affect the savers, firms, employment numbers and GDP. Given the current scenario, would you advocate a hike in the interest rate by the Fed? Carefully articulate your argument and assume that you are advising the Chairperson of Federal Reserve. Be very careful as your advice may have significant impact on the US economy.
apple inc. has made a rare fashion miscalculation they have produced 8000 neon green ipods but have sold almost none.
youve developed a very popular up-scale but reasonably priced clothing fashion line for young people. you produce
Suppose that John Smith gets promoted to a job that causes two changes to occur simultaneously: (i) John earns a higher wage, and (ii) a safer environment causes his health to depriciate less rapidly. How would these two changes together affect John'..
Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).
Describe the precautionary principle and how it relates to safe minimum standards, and minimum regret decision-making. In class we used a "land development vs land preservation" example to address this.
"Moral Hazard" Please responds to the following: In 2020, a leading insurance company started a policy that pays a policy holder a five percent rebate on their insurance premium in a year in which the policyholder does not file an insurance claim. Fo..
you will apply important microeconomics concepts toward the competitive strategies of an organization that operates in
Julia must select between two different designs for preventing closure, which will be in use indefinitely. Model 1st has a life of 3-years and cost of $8000, and maintenance of $1000 every year.
lorenz curve graphs the cumulative percentage of income against the cumulative percentage of households. for questions
Determine whether each of the following increases, decreases, or remains unchanged in the short run: the market interest rate, the quality of money demanded, investment spending, aggregate demand, potential output, the price level, and equilibrium..
Assume that your current income is $50,000 per year and you expect inflation to be 5 percent over the next year a. What must your nominal income be next year for your expected real income to remain unchanged? Briefly explain how you arrived at your a..
What would happen to the equilibrium price and quantity of lattes if the cost to produce steamed milk, which is used to make lattes, increased, and scientitsts discovered that lattes cause heart attacks
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