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Using the aggregate expenditures model or the Aggregate Demand/Aggregate Supply model, what is the effect of Pres. Bush s tax proposals for corporations on the recessionary gap? What is the effect on investment? What is the multiplier effect? What is effect on consumers/ workers (either directly or indirectly? (In your analysis, please verbally analyze and use a graph(s).)
Find the overall change in the economy's money supply if, when the reserve ratio is 5%, the Federal Reserve System buys $250 million of US government bonds from the banking system. What would have been the change if several billionaires deposited ..
Define in general the term "internalize the externality" and explain its application in this case. Discuss a policy other than a tax or subidy that could cause individuals to internalize the externality. Explain briefly.
What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?
The investment demand curve is a useful tool to summarize an important and complex relationship in the economy. The determinants that may cause this Investment Demand Curve for the U.S. economy to shift are acquisition
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.
Find the optimal level of inputs L* and K* that minimize the cost of producing Q0. What is the cost of production associated to L* and K*?
Explain how the aggregate expenditure function shifts in response to the changes in each of the following variables:
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
Suppose the Federal Reserve lowers its target for the federal funds rate six times in seven months while the European Central Bank leaves its target for short term interest rates unchanged.
Assume that the exchange rate between the Canadian dollar and the Euro is 2 Euros per Canadian dollar.
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