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Suppose the U.S. economy is in a recession and faces relatively high inflation. List the twin problems which policymakers face. List the monetary policy approaches the Fed could take to resolve each problem (i.e, do not list the policy tools—just describe in general what the Fed could do for each problem). What makes this type of recession particularly difficult?
The total surplus (TS=PS+CS) under the old tax per unit was $2000. Next, government reduces the tax rate such that the total government revenue drops $200 below its previous value and DWL drops $100 below its previous value, what can be a possible ne..
Assume that an investment is forcasted to produce the following returns: a 20% probability of a $1200 return; 50% probabilty of a $5600 return and 30% probabilty of $9500 return. What is the expected amount of return this investment will produce?
Consider an industry in which two types of managers run firms, Genius and Ordinary. There is a fixed supply of 100 genius managers, whereas there is unlimited supply of ordinary managers. Both types of managers are willing to work for a salary of $14..
Do you think the net effects of trade blocs are good or bad for world trade? Why? How do the efforts of the WTO relate to these trade blocs.
Suppose a liquidity trap exists and current output is below its natural level.(i.e. an economy is currently operating at the zero nominal interest rate) can this economy return to its natural level automatically? if it can not, explain the mechanism ..
Evaluate whether and to what extent the human failures that led to the disaster can and will be corrected.
Using present value analysis math, discuss the cost and benefit of paying for 4 years of college. Make any assumptions you want about the market interest rates. Use math and discuss. Is going to college worth it?
In accordance with the law of supply, if the price doubled, the quantity supplied would generally ______. A shift in the supply curve for gasoline in the United States would result if _______. A typical demand schedule shows higher sales at lower pri..
Thus, the second investment was $120, the third investment $140, and so on. If she continues series of investment 20 years, what will be the value of the investments at the end of that time?stock? d. None of the chemicals are in stock?
How is the effectiveness of team selling demonstrated by the Reynolds team, and what are some of the vantages to this method in this particular case?
Which of these types of firms can earn a positive economic profit in the long run.
Explain why would a country (for example China) choose to keep their currency relatively pegged to the U.S. dollar.
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