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Economic growth is a major issue in the current presidential election. The Romney campaign argues that tax cuts for investment is the best way to encourage economic growth. The Obama campaign says that government spending on infrastructure and education is the best way to encourage economic growth. Is it correct to say that the Romney campaign is using a "Neoclassical" model and the Obama campaign is using a "New Growth" model?
Once you have shown that on your graph, you must state what happened to equilibrium price and quantity. Now remember, when demand and supply change, you will not be able to determine either the direction of price or quantity.
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game
Explain why does the United States have an absolute advantage in both goods. Which country enjoys a comparative advantage in food.
A group of college students were given a short course in speed-reading. The instructor was curious if a monetary incentive would influence performance on a reading test taken at the end of the course. Half the students were offered $5 for obtainin..
Exp[lain how does banks use Covered interest arbitrage to protect themselves.
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand. Explain what the Fed should do if it wants to stabilize aggregate demand.
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
Suppose that Demand and Supply curves for coffee bean is given by-What value of t maximizes Government's tax revenue?
Illustrate and discuss the questions that emerged from Walras research strategy.
Discuss the importance of the average, the trend, the seasonality, the cyclical, and the random portions of the variation in a data series when trying to forecast the quantity demanded of a firm's product. A time series consists of a number of comp..
If Joe's income is $5,040 a month, and the price of goods X1 and X2 are $45 and $5 respectively, derive the following: A) The quantity of X1 and X2 that maximize Joe's utility B) The maximum level of utility Joe receives.
Assume that an earthquake destroys part of capital stock. Forecast what will happen to total production, the real return to capital, and real wage.
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