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Fiscal policy changes automatically when output and employment fluctuate a. Explain why tax revenue changes during a recession b. Explain why government spending changes during a recession c. If the federal government was required to operate under a balanced budget rule, what would it have to do during a recession? Would that make the recession more or less severe?
What are the likely effects of market growth and depreciation on the effectiveness of investments in capacity to deter entry?
Suppose economy starts with GDP at potential, the real interest rate and marginal product of capital both equal to 3% ad a stable inflation rate of 2%. Analyze the effect of this shock in IS/MP diagram. What policy response would you recommend to fed..
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce widgets. Each firm has a constant marginal and average cost of producing the good that equals 10. Find the best-response function of each firm. Remember tha..
Give an example of a situation in which outsourcing had a positive impact on an organization or country or one in which outsourcing had a negative impact on the organization or country.
According to Global Insight, a Massachusetts economics consultancy, what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months?
What does it mean that marginal product of capital is decreasing? show the marginal products are diminishing in the cobb-douglas case. Determination of steady state capital per worker consider the steady state capital per worker k*, how is k* affecte..
Draw a graph with arcade games on the horizontal axis also newspapers on the vertical axis. Joe has $10 every week to allocate between these commodities.
q.suppose the cfo of an american corporation with surplus cash flow has 90 million to invest and the corporation does
Give two distinct reasons why studies might show that physicians firm might use too few nurses and other aides relative to profit maximizing amount of those two types of input.
Fred's Fashion Accessories of New Jersey produces jewelry for sale in Boston and New York subject.
We focused on online retail and services this week. Why were so many entrepreneurs initially drawn to start businesses in the online retail sector?
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $35.00 per unit for all successive units. What is the average varia..
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