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Social Security, Medicare, and Lockboxes
1. How did the Social Security system contribute to the surpluses of the late 1990s?
2. How can a baby boom cause problems for an unfunded pension system?
3. What are two solutions to the "real" problem posed by the growing number of retiring baby boomers beginning in 2020?
4. Why won't a fully funded Social Security trust fund solve the real problem the U.S. economy will face as more and more baby boomers retire?
1. why do economists diagree about the likelihood of a hard-landing?2. why are countries that hold large dollar
Suppose that in 2009 the money supply was $100 billion and real GDP was $300 billion. In 2010, money supply increased by 10 percent and real GDP increased by 5 percent. Nominal GDP in 2010 was $660 billion. What was the price level in 2010? What was ..
The relationship between the aggregate demand curve and the aggregate expenditures model is derived from the fact that:
Demand and supply schedules
Second-degree price discrimination is also known as block rate setting. captures all consumer surplus. sets a different price for each customer.
Externalities are third party consequence of some other action. They can be positive or negative externalities and they impose a benefit or cost to a third party.
1. What are the four areas from which capital can be obtained to expand assets 2. What is the advantage of long term debt (bonds) verses short term debt (current) 3. How can you determine when a bond comes due 4. When emergency loans are taken, when ..
Suppose that since some base year, the the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billion to $600 billion. What is the value of REAL GDP at the end of this period ..
suppose that market demand is described by p 100 - q q where p is the market price q is the output of the incumbent
Calculate the monthly consumer surplus for each group before and after the rate increase. Your boss wants a measure of the losses to each group from the rate increase.
Using two graphs, show consumer surplus before and after government intervention.
Compute the weighted average cost of capital using book value weights. Compute the weighted average cost of capital using market value weights. Compare the answers obtained in parts a and b. Describe the differences.
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