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In the most recent recession of 2008 and 2009, the United States saw a declining GDP, rising unemployment, and, sometimes, deflation. Please describe these variables during the 2008 and 2009 recession and in the subsequent years. What type of fiscal and monetary policy is appropriate to fight the recession? Analyze these using the Phillips curve and economic theory. Research and describe some of the policies that were used by the U.S. government and central bank. Were these policies successful?
Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium? Select one: a. Marginal revenue will rise and marginal cost will fal..
Employers rely on a job applicant's signals:
Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%...
Estimate parameters of the model from the following data by using OLS method. b) What is the estimate of error variance in the above case? c) Find the value of R square for the above data.
Which of the following statements do economists NOT agree on?
Consider the following possible schemes for taxing a monopoly: A proportional tax on profits. Explain how each of these taxes would affect the monopolist's profit-maximizing output choice. Would the tax increase or decrease the deadweight loss from m..
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Elucidate how these problems are int..
In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some..
What are soft laws? What are the advantages and disadvantages of soft laws? Why are soft laws sometimes the outcome of negotiations on global environmental regimes?
Draw the indifference curves that represent the following individual's preferences for peanut butter and jelly. Indicate the direction in which the individuals' utility is rising.
Economists say that wages of most countries relative to the US are, for the most part, similar to their productivity relative to the US. Do you think US apparel manufacturers would agree with this?
Consider a market where supply and demand are given by QXS = -10 + PX and QXd = 71 - 2PX. Suppose the government imposes a price floor of $33, and agrees to purchase any and all units consumers do not buy at the floor price of $33 per unit. Determine..
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