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However, many critics contended that this "sequester" measure is only temporary and too small given the $4T US government budget to have a significant impact on the economy. Therefore, many economists considered this spending cut as too small to bring the economy back into recession. Do you agree or disagree with this contention?
Hint: You may also observe he most recent economic trend and the stock prices in the Wall Street, especially during the end of the second quarter of 2013. 2 pts.
Also, as part of your answer, you may include all pros and cons you might think in supporting your answer. You may also give a reference to the most recent economic trends in the context of consumer confidence, political bickering on the issue of debt ceiling, and government shut-down, unemployment rate and job creation for Aug and Sep 2013, stock market volatility, Housing market rebound, etc.
Prove that a diminishing marginal rate of substitution either implies nor is implied by diminishing marginal utility.
Assume that price level is fixed in the short run so that the economy does not reach general equilibrium immediately after a change in thee economy.
Explain how has technology impacted the globalization process. Is this positive or negative in the short run? What about in the long run.
Assume the Required Reserve Ratio is 10% and the balance sheet of the People's National Bank looks like the accompanying example:
Assume demand shifts out to the right by 10 percent, the elasticity demand is 1.5 and the elasticity of supply is .5, By how much will price change.
Explain how do you define social diversity and business ethics. How has a more diversified labor force affected the corporate structure and economy.
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Illustrate what would happen to the dollar-yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the United States.
Explain how do high inflation rates affect the exchange rate of a country in the short and the long run.
If you increase the vakue of your goods but sell more units is this a violation of the law of demand and how could input suppliers ever lower your profits?
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
What would it not be better to nationalize public utilities as some European countries have done. Explain.
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