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During an expansion, unemployment insurance
A) decreases the size of the budget deficit through a decrease in government consumption of goods and services.
B) decreases the size of the budget deficit through an increase in transfer payments only.
C) decreases the size of the budget deficit through a decrease in taxation only.
D) decreases the size of the budget deficit through a decrease in transfer payments
E) increases the size of the budget deficit through both an decrease in taxation and a increase in transfer payments
How will firms react to rising output price levels? What reactions can they expect from their employees and suppliers over time?
A simple model of search. Consider an agent who lives two periods. He is unemployed at the beginning of the first period and has a wage offer of w. If he accepts the wage offer w, he will work forever at that wage. How much would the agent value toda..
Believe that they must be able to explain people's tastes in order to elucidate what happens when tastes change.
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
Why does nearly every purchase you make provide you with consumer surplus - compared to the short-run supply of rental housing, long-run supply.
Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Does..
A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S. and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles. $70 million worth of these automobiles are purchased b..
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
The manufacturer is especially concerned that customers who receive lousy service will blame the manufacturer if the machine breaks down, not the ISOs. How should the manufacturer address this problem?
Explain in your own words the discrepancy between consumers' and producers' view of tourism as a product. What is meant by the" opportunity costs" of tourism? Show how these may be linked to seasonal patterns of tourism.
Should the firm increase capital and decrease labor or the other way around? When should the firm stop replacing one input for the other? Explain.
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. Draw several indifference curves to illustrate Carl's preferences. Are Carl's preferences co..
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