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During the third quarter of 1997, Japanese GDP was falling at an annual rate of over 11 percent. Many blamed the big increase in Japan's taxes in the spring of 1997, which was designed to balance the budget.
a. Explain how an increase in taxes with the economy growing slowly could cause a recession.
b. If you were head of the Japanese central bank (the same as our FED), how would you respond? What impact would your policy have on the level of investment?
Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.
Consider a pharmaceutical industry with two producers, P zer and Roche. The former is based in the U.S. will the latter is based in E.U. If both produce they both get a pro t of -20. If one produces it gets a pro t of 300. Describe this scenario in a..
Suppose demand and supply are given by Qd = 40 - P and Qs = 1.0P - 20. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: $ b. Determine the quantity demanded, the quantity supplied, and the magnitude..
Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitability.
The college has annual fixed costs of $10 million, also the variable cost for every additional student is $5,000.
explain the statement that an individual bank has little ability to expand the money supply unless all the other banks
Describe the nature oft eh incentive conflict between VCs and the managers, identifying the principal and the agent.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
What is the firms revenue function? Graph this function. Give a plausible reason why a firms demand might look like this.
How much Wyandotte have to decrease the price of polyol to attain a 15% increase in the quantity sold.
How do Minimum Wage Laws affect the equilibrium in the Labor Market? For your selected product, if the government places a mandated price ABOVE the equilibrium price, how would this affect the market equilibrium?
In what did the South have a comparative advantage. Did the Civil War change any opportunity price in the South.
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