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Discuss what is meant by demand-side fiscal policy and supply-side fiscal policy. When the economy enters a recessionary gap, state how the government would use a demand side fiscal policy and how the government would use a supply side fiscal policy to heal the economy.
What fraction of the total variation in the quantity demanded of good Y remains unexplained? What can the student do to increase the explanatory power of his demand equation? What other variables might he add to his demand equation?
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Keynes is famous for saying: "In the long run we are all dead". How long is the long run? How long are you willing to wait for inflation to ease or for unemployment to improve?
Suppose the Australian economy has only three goods, and the typical family purchases the amounts given in the following table. If 1999 is the base year, then what is the CPI for 2006?
Bill sees a classified ad offering a used DVD player for $5. On the opposite page, he sees a big color ad from a national electronics chain offering new DVD players for $50. Bill values a DVD player at $75 so long as it works, regardless of whether i..
What would be the effect on the developing countries of the world if we were to change to a steady-state economic system?
(a) The current price per unit of internet services is $53. Determine the output level that maximizes Joe's profit in the short run. Determine the resulting profit for Joe's. (b) The coefficient on the q term in the total cost function depends on ..
Define what is anything that is used to determine value during the exchange of goods and services?
Explain the level of economic development of Egypt. Identify and explain the macro-political and economic changes that have occurred in Egypt. Describe the economic transition Egypt is going through? Are they moving forward towards a more market-base..
How does this proposed tax hike affect the social cost of gasoline consumption in the short-run In the long-run d. Do you support this proposed tax hike If yes defend your position If not provide an alternative policy (Answer as an economists, n..
Two hamburger restaurants are located at opposite ends of a north-south shopping mall. From end to end, the shopping mall is 1/2 mile in length. Restaurant North and restaurant South each sell hamburgers for $5.00.
Julie consumes food (F) and clothing (C) with a utility function of U(F,C) = FC. PF= 1 and PC=2. Julie has a total of $12 to spend on food and clothing. For all graphs, put food on the x-axis and clothing on the y-axis. a) What is Julie's margi..
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