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Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession. What is the 'Crowding Out' effect? What are the 'Automatic Stabilizers'? What impact do they have on the economy?
How would each of the following affect the firm's marginal, average, and average variable cost curves?
We derived the total cost curve from the total product curve by assuming that the price of the variable input was constant. How would the total cost curve change if the price of the variable input increased. You should answer this by drawing two to..
The data are available for output (Q) and Long Run Total Cost (LTC) for a firm. Using appropriate calculations determine the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.
Suzy knows that she has maximized her utility, as she is on her budget constraint.
Simon purchases a bond, newly issued by Amalgamated Corporation, for $1000. The bond pays $60 to its holder at the end of the first and second years and pays $1,060 upon its maturity at the end of the third year. a, What are the principal amount,..
During the Great Depression, the US economy experienced many bank runs, to the point where people became unwilling to keep their money in banks, preferring to hold on to their cash.
Illustrate what is the correlation between all of these, and the level of unemployment and spending therefore GDP.
Suppose that Boeing is the Stackelberg leader and chooses its quantity first, then Airbus makes a move observing what Boeing has done. Solve the equilibrium in this sequential game. Be sure to characterize the quantity choices, the market price, a..
And what are some examples of new technologies that have created jobs How do you think you might measure the net impact of technological change on overall employment and GDP in the United States
What divergences arise in equilibrium output and efficient output when spillover benefits and costs are present? Provide some 'real-life' occurrences.
Article may originate from the internet however please provide the link to the particular article you are reviewing.
Explain why are prices generally higher for goods/services in London as opposed to Newcastle, or New York as opposed to San Fran.
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