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Time lags in discretionary fiscal policy
Briefly explain why time lags in discresionary fiscal policy can adversely affect the efforts of the congress and the president in attempting to maintain a healthy economy. Could it happen that these time lags could actually work to destabilize the economy?
There are 10 identical firms that have the common cost function c(y) = y 2 + 9. The industry demand function is given by X (P) = 200/
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
Consider the following data on US GDP-What was the grwoth rate of the GDP deflator between 1999 and 2000?
Illustrate the position of US economy over the next couple of years using aggregate demand and supply curves if these expectations are to be realized.
Suppose that yi receives $ 60 per day as interest on inheritance and her wage is $25 per hour, and she can work a maximum of 16 hours per day at her job. draw her daily budget constraint.
Illustrate graphically the impact in the short run and the long run of a Federal Reserve decision to increase open-market purchases.
Solve for the price and quantity that the monopolist would choose to maximize its profit under the more advanced technology. And also calculate the resulting profit.
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
Define and describe the difference between the absolute advantage and the comparative advantage.
Decide if the values of the goods produced are included in the 2006 GDP and explain your reasoning.
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
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