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Q1. Suppose that the government cuts taxes in response to a recessionary gap, but because of legislative delays the tax cut is not put in place for 18 months. Assuming that the government's objective is to stabilize output and inflation, use an AD-AS diagram to illustrate how this policy action might actually prove to be counterproductive.
Q2. Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity and preserving price stability. Please also put references so I can verify and if I need more information use them. Length 2 pages.
Graph all three curves. What is the relationship between the marginal-cost curve and the average total cost curve
You only buy apples and bananas. Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas. Write the equation for the budget line with bananas on the y-axis. Is that equation unique.
Why is a vending machine, which requires payment for each snack purchased, used to sell snacks, while a newspaper can be sold out of a box that allows anyone to take more than one paper?
Explain what would the cross-wage elasticity between teenagers and adults have a positive or negative sign.
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
the area of the coil is perpendicular to the magnetic field lines, what is the resulting average emf induced in the coil? Any help is appreciated!
In Managerial Economics, Applications, Strategy, and Tactics, if contract promises were not excused because of acts of war, would the clearing and settlements clients of Bank of New York change their behaviour
Jim Bradley is the director of the Bradley bakery. He has collected data on his store for the past year.
Despite this finding, the government mandates that new cars have air bags, rather than taxing their use. Is this policy a contradiction.
Estimate the owner's decision to start Sound Devices. Are any of the above costs likely to be one-time costs? If so, how would this affect your answers. Explain.
A personal experience to explain the relationship between virtue, values, and moral concepts as they relate to one of the three theories.
Show that an increase in government spending that is productive in this fashion could increase welfare for the representative consumer.
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