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1. Why do so many economists project increasing budget deficits and government debt over the next several decades?
2. According to the Ricardian view of government debt, how does a debt-financed tax cut affect public saving, private saving, and national saving?
Assume the rural wage is $1 each day. Urban modern sector employment can be obtained with .25 probability and pays $3 each day. The urban traditional sector pays forty cents each day.
4.How did mortgage-backed securities spread losses during the mortgage default crisis 5.How does TARP illustrate the problem of moral hazard 6.What did the Federal Reserve do during the financial crisis of 2008 and 2009 7.How did the recent financial..
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -4 while group 2's is -6. Your marginal cost of producing the product is 50. A determine your op..
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
Suppose that the nominal rate of inflation is 4 percent and the inflation premium is 2 percent. 1.What is the real interest rate Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.
Complete the following table by computing the marginal utility per dollar for successive units of X, Y, and Z to one or two decimal places.
Efficiency is a hot topic in the media regarding transportation, energy, and many other industries. Elucidate how perfectly competitive markets use or do not use resources efficiently.
Harold is a no-nonsense boss who believes that the best way for an organization to achieve its goals is for workers to follow their boss's orders. Thus, he tells workers exactly what to do and how to do it. When Harold tells workers exactly.
What are the pros and corns of a market economy in comparison with a command economy.
Illustrtae what is the profit-maximizing level of price and quantity for this monopolist.
Explain how to describe price elasticity of demand. What are the factors that affect price elasticity of demand.
Give a graphical representation of the trend in inflation and unemployment in terms of unemployment for the period 1983 - 2011. Comment outcome.
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