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Six Problems With Fiscal Policy
Name six problems that complicate fiscal policy for policymakers. Please include examples and explanations.
Give at least three explanations of why economic reasoning would argue that this is to be expected.
Discuss how your answer relates to the income and substitution effects of a price change from Knoxville food prices to Berkeley food prices.
Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). Using graph paper, please graph AVP, MVP, and MFC
Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.
B3 Oraganization is a manufacturing firm that uses job order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours.
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
Elucidate good or service does the company sell. Is the price elasticity of demand elastic or inelastic for that good or service.
Illustrate what effect if any will this have on competition with Canadian and US firms. Elucidate extent is your answer industry dependent.
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
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