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Determine whether each of the following is a positive or normative statement.
a. The Bank of Canada should lower interest rates to increase economic growth, because we're in a recession.
b. Higher government budget deficits cause higher interest rates.
c. The trade deficit should decline because of the fall in the value of the dollar.
d. Because of our high inflation rate, we must reduce the rate of money growth.
e. A generous unemployment insurance system is a primary cause of high unemployment in Europe.
f. Increased average labour productivity in a country should lead to faster growth.
g. Government budget deficits are too high in Canada and should be reduced.
President Obama pushed his massive fiscal stimulus package of $787 through the Congress and later passed by the House and Senate, whose centerpiece was spending most of this stimulus funds
Based on the saving and investment relationship in the closed economy, explain how an increase in government pushes (G) can affect growth in output per worker. We assume that the taxes that the government collects remain unchanged.
Why is market competition important? Is there a positive or negative impact on the economy when strong competitive pressures drive firms out of business? Why or why not?
Assume that Serena Williams desires to accumulate $1 million in 15 years using her money market fund balance of $182,696. At what interest rate must Serena’s investment compound annually?
Explain what happens if the government does not provide appropriate regulation. Determine the costs on society of government regulation.
In a classical world with technological change, if the nominal money supply is increased over time, how will the level of output and prices behave in the long run?
Why might bargaining break down when parties negotiate to remedy a market failure and its associated externality?
Consider a bond that promises to pay $100 in one year. a. What is the interest rate on the bond if its price today is $75? $85? $95? b. What is the relation between the price of the bond and the interest rate? c. If the interest rate is 8%, what is t..
Determine additional dollar cost of adding sales people and how is the expected net revenue generated through adding an additional salesperson given a firm's past sales experience?
Pine Village needs some additional recreation fields. Construction will cost $225,000 and annual O&M expenses are $85,000. The city council estimates that the value of added youth leagues is about $190,000.
Explain how do you define social diversity and business ethics. How has a more diversified labor force affected the corporate structure and economy.
Estimate possible macroeconomic arguments might President Obama use to defend his $862 billion fiscal stimulus package as a part of his economic recovery plans?
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