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Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the IS-LM model to illustrate graphically the impact of the reduction in government spending on output and interest rates. (Be sure to label:
i. the axes;
ii. the curves;
iii. the initial equilibrium values;
iv. the direction the curves shift; and
v. the terminal equilibrium values.)
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
Write down the relationship between savings, capital formation, and consumption.
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
Reflecting back on what you learned about sustainable management practices throughout this quarter; determine 5 activities that illustrate sustainable management of resources that you pursue in your everyday life.
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.
Suppose the domestic appliances industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist.
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
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