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Fiscal Policy Implementation
What kind of fiscal policy did the Congress enacted during the after effects of Hurricane Katrina? What kind of policy are they working on now?
"If every employer hired its best qualified applicants for a job at every opportunity, the phenomenon of black poverty (as distinct from poverty) could be wiped out in ten years." Do you agree/disagree? Comment.
What is the profit-maximizing price to charge a Texan for a car wash? What is the profit-maximizing price to charge a Californian for a car wash?
The CEO of a major automaker overheard one of its division managers make the following statement regarding the firms's production plans:
Explain the influence that transferable property rights versus non-transferable property rights, has on individual decision making.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
Show the area on the graph that would correspond to consumer's surplus earned by the typical boarder/skier with this payment scheme. Explain your answer briefly.
Explain how each of the following would cause the yield curve to shift if between now and next year:
What is the business cycle and how is it linked to a secular trend? Describe each of the four phases of the business cycle and indicate how they a linked to the concepts of a "boom", a "recession" and an "expansion".
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.
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.
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently.
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