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1) Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.
2. Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium.
3. Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
4. Although GDP per capita is the most commonly used measure of a country's success, many economists believe it does not give an accurate measure of a nation's economic well-being. Some studies have concluded that that GDP is not the best measure of well-being, and although it may be the best available on a timely basis, other factors need to be considered in addition to GDP to give a more accurate picture of economic well-being and the disparity of well-being between nations. Clearly identify at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Write a formula which describes the marginal product of labour in the short run as a function of the amount of labour used.
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
Does the aggregate demand-aggregate supply model support Bernanke's thesis.
Suppose the T-account for ABC bank is as follows: assets: reserves($150000), loans(250,000)and deposits $400,000.if the fed requires banks to hold a 10 percent of deposits as reserves explain how much in excess reserves does ABC holds.
What price should the leader charge to drive all the small firms out of the market? Write the marginal revenue function of the dominant firm.
abc company owns a crane with an original cost of 500,000$,with an estimate salvage value of 200000.its life is estimated to be 15years.using straight line method, Compute book value at the beginning of year 9.
Suppose Dell computer Company operates in a perfectly competitive market producing 5,000 computers per day. What is total cost to decrease and profits to increase.
As an industry moves from being a monopoly to a monopolistically competitive one. Illustrate what happens to elasticity of demand curve facing industry.
Amy Jane, a new manager at C & D Grooming, has been asked to focus on the competitive environment of the organization. Illustrate which of these factors is among those Amy Jane should focus on.
Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.
What should be a firms goal when managing foreign exchange and associated risks? How might the firm reach these goals?
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