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4) Assume that the government proposes to cut taxes while maintaining the current level of government expenditures. To finance this deficit, it may either a) sell bonds to the public, or, b) print new money (via Federal reserve cooperation).
-What are the likely effects of each of these alternatives on each of the following?a) interest ratesb) consumer spendingc) business investmentd)aggregate demand.
Would Keynesians , monetarists, and supply-siders give the same answers?
Describe why the following is an example of monopolistic competition: There are a number of fast-food restaurants in town, and they compete fiercely.
Given the Production Function: Q = 21X + 9X2 - X3, where Q = Output, and X = Input . At what value of X does Stage II of the production function begin?
Now assume that there're five firms in the industry, and that they collude to set the price. What price will they set? What will be the output of each firm? What will be the profit of each firm?
Assume that the demand changes to QD = 600-2P and the supply function stays the same. Graph the new situation in Excel. Find the new equilibrium price and quantity, and show it on your graph.
I believe that fast food restaurants show short run production function because of the one fixed input, capital. But, I need to elaborate more and produce the production function equation Q=F (L,K,M...) Can you please help?
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
Assume a bank has $200,000 in deposits, a needed reserve ratio of 10%, and bank reserves of $50,000. Then the bank can make new loans in the amount of?
Write a situation that would cause a shift in labor supply and demand. The following areas have had high job growth values and can be used for your scenario:
What is the Marginal Rate of Transformation between sugar and tea?
Describe supply and demand as it relates to airport market structure(oligopoly). Describe customers options - given the customers are price sensitive
You know from data gathered on the widget market that market demand has recently increased and market supply has recently decreased. As manager of the facility, what decisions should you make regarding production levels and pricing for your widget..
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
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