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Business cycle explained in this answer
What is a Business Cycle? Explain what happens to Economic growth and Consumption at each stage of the cycle. At which stage of the Business cycle is your firm right now and why?
Compute the long-run impact of a permanent rise in money supply versus a permanent tax cut.
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
Describe the expected amount of dollars to be paid by the Wake Forest Co. for the pesos in one year.
In Gelate, Pennsylvania, the market for compact discs has evolved as follows. There are two firms that each use a marquee to post the price they charge for compact discs.
President Obama pushed his massive fiscal stimulus package of $787 through the Congress and later passed by the House and Senate, whose centerpiece was spending most of this stimulus funds
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
All firms in a Cournot monopolistically competitive industry have the same cost function C(q) = 25 +10q. Calculate the equilibrium price, firm output, total output and number of firms in the industry.
Illustrate what percentage of the CEO's total earnings is tied to profits of the firm.
When and why were the inflation and unemployment rates negatively correlated? When and why were the inflation and unemployment rates positively correlated?
What is the profit-maximizing price to charge a Texan for a car wash? What is the profit-maximizing price to charge a Californian for a car wash?
Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.
Elucidate what should the US Congress also the Federal Reserve do about it?
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