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Identify each of the following policies as either fiscal policy or monetary policy and explain why.
a) The cash for clunkers program which provided a tax credit for purchasing a new vehicle.
b) The FDIC insured amount for bank accounts is increased to $250,000 and bank reserves are paid interest.
c) New construction projects on highways and roads paid for as part of the recovery act.
For ONE policy, explain the intended effect on the economy using the AS-AD model.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard..
Financial markets make it possible for those who have saved money to earn a reward by providing the financing for business formation and expansion. Business owners can seek financing through the stock market, the bond market, or the banking sector..
Public Choice theorists have emphasized that there is a bias toward growth in government due to the "concentration of benefits" and the "diffusion of burdens" (or costs) from government spending. Some people, like Wilhelm Ropke.
Institutional economics and neo-classical economics. Off-hand, which of the two seems like a more sensible approach? What are some of the elements you agree or disagree with?
a doctoral student has just completed a study for her dissertation and found the following demand and supply
ann mccutcheon is hired as a consultant to a firm producing ball bearings. this firm sells in two distinct markets each
question 1 nbspdemand elasticity commuters in a medium-sized city can travel either by automobile or by bus. the demand
Many airline routes worldwide are served by only one airline (a monopoly). Within the U.S., these are often from a small or mid-sized city to a major carrier hub and frequently operated by a regional carrier under contract to the larger airline.
Suppose you heard the following: "The gap between actual output and potential output for this year is estimated to be 6 percent to 7 percent of potential output. Wholesale prices are virtually unchanged from one yea..
An oligopoly market structure is distinguished by several characteristics, one of which is market control by a few large firms. What are some other characteristics of this market structure? Check all that apply
marginal revenue exceeds marginal cost, marginal cost exceeds marginal revenue, total cost exceeds total revenue.
Limited funding may lead scientists to research one topic instead of another.legislators may create new laws about the use of natural resources based on the recommendations of scientists.
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