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Mr. Mallon would like to increase gross domestic product (GDP) while keeping unemployment, taxes, and inflation as low as possible. Should fiscal policy be a large part of the campaign, or should the focus shift to supporting the Federal Reserve and monetary policy?
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
Can you think of any reasons why? How would you describe the market structure of the world coffee market: is it competitive or not? Present your arguments.
Many people look back at their years at college and think one of two things; either they relish the fact that they were able to learn and grow from their experience and gain perspective on their future career, or they regret not allowing themselves t..
Interest rates keep dropping. In my country in northern Europe we now have negative interest rate - banks have to pay the central bank for lending it their money. Why interest rates are lower than any time ever before?
The demand for organic carrots is given by the following equation: QDO =75−5PO +PC +2I where PO is the price of organic carrots, PC is the price of conventional carrots, and I is the average consumer income. Notice how this isn’t a standard demand cu..
B is offering to buy an object from S. S values the good at $4 ( type H), or $3 (type M), or $2 (type L). But S's exact valuation is unknown to B, who simply attaches equal probabilities, a fact commonly known to both players. B values the good at $5..
If the labor supply curve is very elastic, a tax on labor:
Spending by the consumer sector is the driving force in the US economic system. Although the business and government sectors make a considerable contribution to the success of the economy, it is the spending by the consumer or household sector of the..
How would the following circumstances affect workers’ ability to earn higher wages by forming a labor union? Do these conditions increase the union wage premium, decrease it, leave it unchanged, or is the effect ambiguous?
Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
Describe why it is often asserted that exporters suffer when their home currencies appreciate in the real terms against foreign currencies and prosper when their home currencies depreciate in real terms.
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also, the consumer has $288 to spend, and the price of X, PX=16, and the price of Y, PY = 1. How much X and Y should the consumer purchase in order to maximize her utility? How much tota..
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