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Current fiscal policy recommendations
What recommendations would you make to Congress and the President for the management of fiscal policy in the next few years? Why?
What is business cycle? Describe the four phases of the business cycle. Where on the business cycle do you think the U.S. economy is today?
What is the unemployment rate? What will the unemployment rate be if the unemployed increases to 7 million and 3 million individuals become discouraged workers?
Suppose you want to produce WIDGETS in your country. The international price of an imported WIDGET is $50 and pays an import tariff of $10 per unit. Three inputs are needed to produce a WIDGET.
You are a budget analyst in a California State legislative budget committee and have been asked to prepare a policy brief on the budget issue for the state.
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
Find the following: First solve this problem using an Excel spreadsheet approach and then do the problem using the optimization procedure; compare the answers for the two methods.
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
What is the opportunity cost of going to a doctor to be examined for skin cancer? Would eliminating research reduce or increase the cost of U.S. health care?
Elucidate the roles of government bodies which determine national fiscal policies.
If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75, X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
Use our discussion of price discrimination to justify this argument. What problems do you envisage in implementing the policy?
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