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Simulataneous Fiscal and Monetary Policy
Suppose the Fed wanted to reduce aggregate demand (to fight inflation) and the president wanted to increase total expenditure (to fight unemployment). What kind of action would each take? NOTE: There are 2 separate entities here with 2 separate goals. You need to tell me what policy would be initiated by EACH entity separately.) What effects would their combined actions have on GDP? What effect would this have on your industry?
Bertand: If the firms compete on the basis of (continuous) price, what is the Nash equilibrium if the game is played once? A finite number of times? Explain clearly.
Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
Briefly explain in words the sequence of changes that occur as the two economies move from no trade to free trade.
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
As a manager of chain of movie theatres which are monopolies in their respective markets-Devise a pricing strategy to maximize your firm's profits.
Derive an expression for the marginal utility of good 1, and for the marginal utility of good 2. Using these, solve for an expression describing the slope of an indifference curve: MRS(x1,x2).
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
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?
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
What are the macro and micro problems? What systems are affected structural, psychosocial, technical, managerial, goals?
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
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