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Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on healthcare, tightening of the legal and institutional environment, and so forth. What effect would this event have on AD or AS, other things being constant? What would be the resulting effect on equilibrium price level? Explain. What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this rise or fall in the level of AD.
some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn't matter which side it is, as long as everyone chooses the same side. Otherwise, everyone may get hurt. Is there a Nash equilibrium in this g..
Now assume a 7% real discount rate. What would the present discounted value of the project be? Should the project still be approved under this discount rate?
The damage (to cigarette makers) is generally under control." Illustrate what action do you suppose the cigarette companies took to avoid bankruptcy.
What factors determine the intensity of rivalry in an industry. Is the intensity of rivalry in the PC industry high or low.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Determine point price elasticity of demand at P= $3.00. Illustrate what would be new point price elasticity if price were raised to P= $4.50.
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
A charitable university benefactor has decided to donate a large amount of money for student scholarships.
Which of the following represents the consensus among most economists today with respect to the management of unemployment?
An individual likes owning cars is better. In order to own a car, an individual must have a 1:4 ratio of frames to tires.
Illustrate what are the equilibrium values of the interest rate, price level, consumption and investment. What are the new short-run equilibrium values of the interest rate, price level, consumption and investment.
Illustrate what are the arguments for using real per capita GNI to compare living standards between countries. What weakness does this measure have.
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