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In a new study business school professors Christian Broda of the University of Chicago and Jonathan Parker of Northwestern University conclude the stimulus payments "are providing a substantial stimulus to the national economy, helping to ameliorate the ongoing 2008 downturn." U.S. households are "doing a significant amount of extra spending" because of the $90 billion in government payments that have gone out so far, they say. As outlined in the The Wall Street Journal today, the preliminary assessment found that the typical family increased its spending on food, mass merchandise and drug products by 3.5 percent once the rebastes arrived relative to a family that hadn't received its rebate yet. The average family spent about 20 percent of its rebate in the first month after receipt, a slightly faster pace than with the 2001 rebates. The authors estimate that nondurable consumption-a piece of consumer spending that excludes big-ticket items such as refrigerators and televisions-rose by 2.4 percent in the second quarter as a direct result of the stimluuls payments. It'll be boosted by 4.1 percent in the current quarter, they estimate.
By how much would the 2008 tax rebates have shifted AD if the MPC was 0.90?
Mytown uses an interest rate of 6%. What is the EAC for Mytown's policy? What is the EAC for the optimal policy? What is the optimal policy?
"In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The pursuit..
You are an economist in a company where you have recently got a new Chief Executive Officer (CEO) who is assigned to merge your company with other companies in the market. Give a mathematical expression for Total Revenue, Marginal Revenue, marginal c..
How to design an experiment to test the theory that changing the oil of the new backhoes and forklifts will reduce repairs.
Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less t..
When looking at inflation, you will find that this is measuring how much prices change. How does this influence the unemployment rate?
What role, if any, do property rights (efficient or inefficient) play in designing and implementing environmental policy?
In 1796, Gottfried Christoph Härtel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated cost functions to make production decisions. Graph the total cost, average total cost, av..
Consider two markets. The initial equilibrium for both markets is the same, P = $6.50, and Q = 41.0. When the price is $6.75, the quantity supplied of motorcycles is 53.0 and the quantity supplied of pancakes is 111.00. Using the midpoint formula, ca..
A significant difference between an administrative agency hearing and a court hearing is that... a binding decision can only be made by an agency. OR there is no right of trial by jury before an agency. OR a court hearing allows no public interventio..
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
Explain and show graphically using AD-AS diagrams how each of the following would (separately) affect the economy first in the short run and then in the long run. Assume that Canada is initially operating at its full-employment level of output, that ..
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