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Tightening of fiscal policy
Using your own employment experiences (and be sure to identify the sector in question), how would you relate the hiring practices of that industry or industries to fluctuations in the business cycle? What impact does a tightening of fiscal policy have on your industry in general?
You have been hired to work with a resort owner in Northern Minnesota. This resort owner runs a very small operation catering to mostly people who like to fish.
Describe the uncontroversial final effect of a contractionary monetary policy and an expansionary fiscal policy.
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
Illustrtae what are the different incentives that investors have to hold TIPS.
If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion, we can conclude that the MPC is:
Give the utility function U(x, y) = (x-4) 1/2 (y-2)- 1/2 , what is the minimum income needed to ensure positive utility?
Assume two firms, A and B, serve a market with demand D(p) = 11 - p. Also assume that (i) firms compete for market share
Are natural disasters occurs of inflation or deflation. Where might the public see the evidence.
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
Answer whether the following statements are true or false, explaining your answer in each case.
Explain how much will your industry's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
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