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Explain the following statement: Any deviation from planned output or planned expenditures (Consumption + Investment) will throw the economy into disequilibrium. To illustrate your explanation, provide an example of how actual output might deviate from planned output and how actual expenditures might deviate from planned expenditures. List any economic reactions might you expect in the examples you provide.
Suppose a medical study reveals new benefits to consuming beef, and at the same time a bumper corn crop reduces the cost of feeding cattle. The equilibrium quantity of beef will stay the same.
Describe how capital and labor affect the production function for both a toy manufacturer and a retailer during the Christmas retail season.
allows foreign customers to purchase them by mail for price v2 where v1, v2 are the domestic and foreign reservation prices The problem is that frequent travelers are tempted to purchase the CD players domestically, then sell them overseas. Assume..
To mitigate agency problems between senior executives and shareholders, should the compensation committee of the board devote more to executive salary and bonus(cash compensation) or more to long term incentives.
where there is a natural monopoly situation there may be a case for government intervention either in the form of price
What are governments fiscal policy options for moving the economy out of a recession Speculate on which of these fiscal options might be favored by a person who wants to preserve the size of government and a person who thinks the public sector is ..
Can you articulate how macroeconomics and microeconomics come into play in the context of firm decision-making in a global business. Please provide an example.
Our politicians frequently discuss what we need to do with respect to immigration reforms in this country. Some critics, however, suggest that a focus on legal reforms will not impact the situation significantly
What are the similarities and differences between the three countries in terms of the percentage of the population that works in each type of industry?
Explain the nature of the deadweight losses that occur from a tariff. What is countervailing duty, why is it needed, and how does it work. What is the difference between a specific tariff and an ad valorem tariff.
Given that Y=900 and want consumption and investment are given through, Fill the entries as you require to answer the questions.
what are the basic question for an economic system
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