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Fiscal Policy.
(a) The economic effect of an increase in government purchases is likely to depend on how the purchases are financed. Explain how an increase in G is increases output and employment if financed by a lump-sum tax (or debt), but is likely to decrease output and employment if financed with an income tax.
(b) The economic effect of an increase in government purchases is also likely to depend on the what the increased spending is used for. Suppose that the increase in spending is used to finance a school lunch program-goods and services that are viewed as perfect substitutes for privately-supplied school lunches by the private sector. Explain why such a program is unlikely to have much of an impact on output and employment even if it is financed with a lump-sum tax.
The demand schedule (or demand function or curve) for a good shows the total quantities (Q) that buyers are willing and able to buy at various prices (P) in some period of time. For example, here is a demand function illustrating the very special
A country is always worse off when its currency is weak (falls in value). Is this statement true, false, or uncertain? Explain your answer.
Which methodology is the most robust? In other words, how well can it be adapted to suit different projects or circumstances? What is the underlying philosophy for each methodology?
Asume that an individuals inverse demand for wireless services in the greater Atlanta.
1. Give examples of industries that are monopolistically competitive. Find the news articles, books which explain these examples.
Robinson Plastics makes clear plastic products with injection molding techniques. Their latest invention is a plastic cup with a sharp blade mounted inside to cut prescription pills into small pieces. The cup is placed over the pill and as the cup..
Antitrust laws were created in order to maintain competition and protect consumers. There have been several high profile Antitrust cases in the last few years (e.g. Microsoft). Think of a recent example. Do you think the right decision was made
Provide an examples of how each industry practices price discrimination. What are the short and long term strategic reasons these industries employ tiered pricing.
Calculate the cost of the insurance in pounds sterling
Show that it is also possible that the government can give the consumer a cash grant of less than $100 (thus lowering the cost to the government) and the individual will be no worse off than under the food stamp program.
Explain what each of these economic indicators measures and what the significance of the current data is for the economy and increases in resources or improvements in technology will tend to cause a society's production possibilities curve
Calculate Gross National Expenditure (GNE) for 2014 and calculate Gross National Product (GNP) for 2014;
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