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Compose a 200-300 word response to the following question.
Discuss whether you believe active or passive fiscal policy is best for the economy. Support your answer with a discussion of the advantages and disadvantages of active and passive fiscal policies that were covered in our text and with historical statistics and/or expert opinions.
Consider an exchange economy with two people, A and B, and two commodities, food (x) and water (y). A's and B's preferences are described, respectively, by the following utility functions: . u A ( Xa , Ya ) = (Xa)^ 2 ( Ya ) , MRS ( Xa , Ya ) = (2y^a)..
Use graphs to derive the LM curve for each of the following cases: (a) the central bank targets the money supply (b) the central bank targets the interest rate (as it does now) (c) the economy is in a “liquidity trap” because the demand for money is ..
As a musician, Mary plans to use JC Music Co.’s service for recording drum sound in her songs. She can use either drum machines or drummers, and they can substitute three drummers with one drum machine. The cost of hiring a drummer is $8 per hour and..
At a management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statement correct? If so, why? If not, explain why not.
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
A young couple is purchasing a new sport utility vehicle. The price of the new vehicle is $28,300, sales tax is 7.5%, title and registration will cost $105. The dealer is offering a special finance rate of 1.9% APR for 36 months (compounded monthly)...
You are assessing the difference in the average time that two new fully-charged solar batteries can produce electricity before they need to be again exposed to the sun. Using a sample of 50 Type 1 batteries and 50 Type 2 batteries, you build a 90% co..
Suppose that a change in the expected inflation rate leads supply and demand to adjust so that the expected real interest rate is unchanged at 3.0 percent.
The initial cost of a pickup truck is $11289 and will have a salvage value of $3730 after five years. Maintenance is estimated to be a uniform gradient amount of $133 per year, with zero dollar for first year maintenance. The operation cost is estima..
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4.
This would increase the loans account and the account. This would also bring the leverage ratio from its initial value of to a new value of . Which of the following is true of the capital requirement?
What happens when tariffs are imposed, in terms of the importing and exporting countries? Use graphs as needed and explain your answers thoroughly.
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