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Hurricane Sandy in 2011 destroyed much capital in houses, buildings, and infrastructure on the East Coast, but resulted in little loss of life or limb. What would you expect to be the effect on actualoutput and potential output in the short run (relative to the counterfactual of no hurricane)?Explain your reasoning, and use the appropriate analysis.
[Guidance: Use the neoclassical growth model for potential output, and the IS-LM model for actualoutput. You may find it helpful to review the neoclassical theory of investment to determine theimpact of the shock on investment in the short run, focusing on the effect of depreciation from thehurricane on the difference between the optimal and the actual capital stock.]
Write a 400- to 700-word memo to the economic adviser. Describe the change in tax revenues for the government in the new equilibrium, in both the short and longer terms.
Brian and Allen are thirty years old with identical academic records and job history. Both currently have jobs paying $40,000 each year.
Describe the Diamond-Water paradox and the solution. Explain why price is greater than marginal revenue for a single-price monopolist and how this differs from perfect competition.
A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. Briefly explain the short-run adjustments for the market and the firm to a decrease in consumer incomes.
Illustrate what measures can the Indian government, international organizations, the mulitinationals take to help the industry revive.
Suppose you expect interest rates to increase in the future. You are not indifferent toward interest rate risk and the desire to maximize expected return. If you hold a portfolio consisting of 50 percent
With offshore and ERP in mind, outline your approach to gathering and structuring requirements for this new system, including which roles you plan to engage and how you plan to collect, validate, and represent the requirements you elicit.
One current economic issue facing the American government is ensuring people in danger of foreclosing on their homes can keep them. Explain why this issue is important
suppose in the solow growth model that s.25 n.02 d.08 and fk k3asuppose that z2. what is the steady state level of
a. What were the main causes for the financial crisis that hit the world economy in 2007- 2008 b. What caused the European debt crisis Brieáy discuss the situations in Greece, Ireland, Spain and Portugal - what are the main problems in these econo..
Explain how much more money has the Fed printed and where is it now. What affect will an increased M1 money supply have in the long-run.
What should be the deciding factor in intervention by the international community when allegations of human rights abuses are made - humanitarianism or the extent to which action/inaction will result in a power vacuum ultimately filled by terror o..
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