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Explain the government's options for expansionary fiscal policy & what they mean for the budget balance. Assuming that the economy is in a recessionary gap, graphically show the impact of expansionary fiscal policy on real GDP. Should the government always try to balance its budget? Explain by refeering to automatic stablizers.
Suppose that a profit maximizing monopolist's marginal costs increase at all output levels. What is likely to happen to the quantity the monopolist produces, AND the price it charges?
What are the most important things to consider when making a pricing decision for a good whose demand as well as is elastic.
Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all other countries?
Explain in your own words "What Is The World's Happiest, Most Productive Country?" and Why? Human resources people worry a lot about worker productivity and “engagement,” a.k.a. happiness. But are the world’s happy workers the most productive?
Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate
Suppose the price elasticity of demand for heating oil is 0.2. If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of the heating oil demanded? use the mid-point method.
What is the biggest disadvantage of using shells as money.
Indicate the types of price discrimination for the cases below. Based on the above examples, explain the difference between these types of price discrimination. Case A1. Gino Pizza offers a lunch special: 5.59$ for a grilled chicken sandwich, a bottl..
A 473-foot, 7000-ton World War II troop carrier (once commissioned as the USS Excambion) was sunk in the Gulf of Mexico to serve as an underwater habitat and diving destination. The project took 10 years of planning and cost $4 million. Assume the $4..
For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which
Neville has demand function q = .02m - 2p, where m is income and p is price. Income is $8,000 and he initially had to pay a price of $40 per bottle of claret. The price of claret rose to $80. The substitution effect of the price change is?
The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
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