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Fiscal policy is the responsibility of the Congress of the United States. Describe what tools are available to the Congress and how those tools have been used to affect the economy over the past several years. If possible, explain why the economic multipliers do not always work when predicting economic growth in the GDP.
Describe the problem of “adverse selection” when health insurance is offered at a community rated premium? Define the term “community rated premium” as well. Is it possible to address the problem of adverse selection by increasing the premium level? ..
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
Assume that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by.
Keynes said it was the stock market crash of October, 1929 that was the trigger mechanism for the Great Contraction from 1929 to 1933. He believed that the crash caused expectations to become catastrophically pessimistic. Use the Keynesian Cross Mode..
Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations.
As asset is purchased in September and is being depreciated over 7 years using MACRS 200% Declining Balance depreciation switching over to Straight Line Depreciation, with the mid month convention. In what year should the depreciation method be switc..
She argues that this process will make for better utilize of information within the organization. The same concept could be applied beneficially within the corporation.
Consider a market characterized by the following demand and supply curves: Qd = 1600 - 20p and Qs = - 900 + 30p. If regulators decide to restrict payments by setting a price ceiling equal to $35, how many units will be sold or bought? Calculate the ..
Illustrate what's the equilibrium price and quantity in the free market equilibrium. what's the best tax to impose on the power plant, why.
Describe the long-term trends in inequality in the United States using the available measures. What are possible explanations for these long-term trends.
Dewey Cheatham is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). Dewey has been doing some research into how he can increase the Company’s revenues and thereby really impress..
What is the economic justification for zoning laws, which restrict the private property owner’s right to do what he or she wants with his or her property?
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