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Based on what we have learned so far regarding the macro-equilibrium and fiscal policy, critically discuss the claim by some economists (like Paul Krugman) who have suggested that austerity measures have amplified the economic slump in Europe (Greece, Spain and Italy to cite a few).
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
A fairer distribution of rewards may generate a higher average productive effort on the part of the population in that way enhancing efficiency.
Illustrate what was the growth rate of the GDP deflator between 2007 and 2008. What was real GDP in 2007 measured in 2000 prices.
Illustrate what might a more proactive Motorola have done dissimilarly had it correctly perceived the steps its rival Nokia would take.
What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
Utilizing the standard IS/LM model, elucidate how the scope of monetary policy to change real economic activity in the short run depends on the private sector reaction to interest rate changes.
Why is income from capital gains taxed differently than wage income? There are perhaps historical, practical, and theoretical reasons. What are they?
What are the basic institutions which should be at place for the market economy to perform well? 'Once the institutions are at place, market economy works like a self-sufficient system with a circular flow of money and material.' Draw a complete diag..
The securitization process reduces the total amount of credit risk embedded in the underlying mortgages, attract investors with different risk appetites, and give home buyers easier access to credit. Each time a new security is created during the sec..
Which of the following statements are true about both monopolistic competition and monopolies? Select all that apply.
If labor is paid $100 and your average tool price is $250 what is profixt maximizing level of output and labor? What is your maximum profit?
For several decades the labor force participation rate of women increased steadily but average hours worked per employed woman decreased steadily. Holding all other factors constant, could rising wage rates of women explain both phenomena? Explain. [..
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