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Which of the following scenarios is an example of a transmission lag?
1--The economy enters a deep recession and Congress passes spending on public works that will take years to plan for and build.
2--The economy enters a deep recession on the same day that new quarterly data show positive economic growth.
3--The economy enters a deep recession, and Congress takes two months to approve an extensive tax cut bill.
Which of the following scenarios is an example of a data lag?
1--Policymakers obtain relevant economic data months after a recession has already begun.
2--A new law requires that all new spending bills go through at least one month of debate before receiving a congressional vote.
3--In response to a recession, Congress passes a spending bill for interstate highway upgrades that will take years to plan and complete.
Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. If the union negotiated a fee of $45 instead, what would you charge private pay pa..
Prepare a table that shows total variable cost, average total cost, and marginal cost at each level of output.
What is the opportunity cost of investing in capital? Do you think a country can "over invest" in capital? What is the opportunity cost of investing in human capital
Illustrate what are the major determinants of price elasticity of demand. Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic.
What was your profit on 1 Short Call option (100 shares) with a $70/share strike price and a $4/share premium when the price at maturity was $82? How much profit did you make per share if you SELL SHORT at $38 and BUY TO COVER at $29. Your premium fe..
The relationship between the less- developed- countries and the developed countries in the evolution of international trade has always been a bit strained. Discuss this relationship, including policies adopted and /or advocated by each group to "help..
Draw a PPC with a bow and why it occurred, label all points and X & Y axis, show efficiencies and inefficiencies and describe with examples. Draw a supply and demand curve, label X & Y axis and show equilibrium. Show shortage and surplus and why they..
In the long run, which type of firm may follow a "price leadership": Inelastic long run markets demand is very important for this type of industry to survive and do well in the long run: Firms have excess capacity in the long run under? Under perfect..
Two fi?rms compete in a duopoly market. Each fi?rm chooses a quantity and the price in the market is determined from the following inverse demand function.
Assume that the following data characterize the hypothetical economy of Trance: money supply = $190 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, incr..
Mr. Smith has saved $1800 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5000 per year. In the eighth year, he decided to wit..
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