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Provide two specific real-world examples of GDP limitations. Given the limitations of GDP, is GDP a reliable indicator of the health of the U.S. economy? Explain why or why. Be sure you discuss the intended uses of GDP, that is, why the U.S. Department of Commerce's Bureau of Economic Analysis compiles GDP.
The substitution effect resulting from a wage increase is larger when
You buy a new pair of shoes on sale. The printed receipt states very clearly that the shoes are not returnable. After you get them home, you wear the shoes around the house for a day and decide that they just don’t fit you correctly.
What are the economic functions that financial intermediaries perform that benefit society? In your answer, discuss the relationship of financial intermediaries and financial markets to the savings-investment process within an economy and to each oth..
Using an instance in which you bought or sold something in the last week describe the terms of an express contract that might arise between the supplier and the seller. When would an implied-in-fact contract arise between the seller and a buyer?
Suppose that a Presidential candidate proposes to cut taxes by $120 billion in his or her first year in office. Assuming that the US is a large open economy and its MPC = 0.8, state the long run impact of this tax cut on Y, C, I, G, NX, r, ε, Sp, Sg,..
Use the IS-LM model to illustrate graphically the impact of the Pigou effect on the equilibrium level of income and interest rate during the Great Depression, when prices were falling.
What are the advantages and disadvantages of seeking funding from venture capitalists?
The operating instruction issued to the European Central Bank is to use monetary policy to focus entirely on targeting the inflation rate. If it follows those rules what would it’s Taylor rule equation look like? Be specific.
If market inverse demands in two markets are p1(Q1) = a1 − b1Q1 and p2(Q2) = a2 − b2Q2 and the firm produces according to C(Q1, Q2) = c1Q1 + c2Q2, determine the firm’s optimal quantity, price and profit level.
Suppose that, in order to finance a government- sponsored health plan, the government needs to increase spending by 10%. The government plans to finance the higher spending with an increase in taxes. As a consequence of this government policy, the ag..
Demand for good X is x=100-P, where P is the market price of X. A monopolist supplies this market and has a cost function 15x. When the monopolist produces his optimal level of X, what is the resulting dead weight loss on the economy?
Use supply and demand curves to analyze increase/decrease for the following scenarios? i) shift ii) movement iii) equilibrium price iv) equilibrium quantity. Coffee prices soar due to a shortage of coffee beans. Market: Donuts. Prices for next year a..
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