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The Great Recession
Explain what caused the Financial Crisis of 2007-2009.
Explain how in the economy could be self-regulating in the long-run and should recover from the Great Recession.
However, in Europe the Great Recession seems to continue because of excessive government debt and the European Central Bank's reluctance to buy government bonds. Explain.
A representative company with long-run total cost given by TC =20+20q+5q2 operates in a competitive industry where short-run market demand and supply curves are given by QD = 1,602 - 40P and QS = - 400 + 20P.
Give some arguments for and against the critisim of the federal income tax exemption of interest on state-local debt as being an inefficient subsidy.
Assume that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account on the 1st day of the month,
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Vulnerability Analysis
Discuss three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers?
Elucidate how the firm can use transfer costs to lower the corporate tax burden, which is 34% in the U.S. and 30% in the foreign location.
Assume that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1 calculate the real wage rate.
Suppose the ABC Corporation adopts a policy prohibiting its top-level executives, whose compensation packages-Use economic theory to analyze the incentive effects of this prohibition.
Describe (with appropriate figure) short run and the long run impact of immigration on native labour market when the immigrants and natives are complements.
Explain how does the timing of lay-off and hiring decisions made by firms explain the misleading characteristic of this indicator.
Calculate the price elasticity of demand for paint and Illustrate the calculations.
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