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The famous Swedish economist Assar Lindbeck remarked in his book on rent controls, “rent control appears to be the most efficient technique presently known to destroy a city-except ofr bombing”. Rent controls place price ceilings on rents at levels below equilibrium rental rates for the stated purpose of marking housing more affordable for low-income families. Using demand and supply analysis, answer the following questions : a. How does imposing rent control affect the number of housing units available to low-income families ? b. Under rent controls, can all low-income families get rent-controlled housing? c. Who gains from rent controls? Who loses? d. Why would Professor Lindbeck think rent controls are destructive? e. Can you think of an alternative policy to make plenty of housing available to low-income families that would not be subject to the problems of rent controls?
Monetary policy tools used by the Federal Reserve (Fed) today do NOT include
Calculate the price elasticity of demand for Einstein%u2019s Bagels and explain what it means. Derive an expression for the (inverse) demand curve for Einsteins%u2019s Bagels.
With the Federal Open Market Committee seeming to have such a positive outlook, how do you think this will affect the economy? Do you agree that the workforce /labor markets will continue to see gains?
You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently unde..
Distinguish between the following views of monetary policy
Working at home (preparing meals, taking care of children is not counted as part of GDP. Such work also doesn't constitute employment in labor- market statistics. Calculate the measured employment and unemployment and the measured labor force for eac..
Supermarket ends its promotion. What does her budget constraint look like now. What combination of meat and potatoes maximizes her utility.
q1. derive step by step the steady state level of capital and output per worker for each one of the models below basic
Your company sells expensive, branded fountain pens. There are 100,000 people aware of your pens. Each of these 100,000 peoples has his or her own willingness to pay for your pens. This willingness to pay numbers are uniformly distributed between $0 ..
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
q. you have been hired to manage a small manufacturing facility whose cost and production data are given in the table
Consider a numerical example. Originally, prices were p1 = p2 = 1 and income was 10. In the next year the price of good 1 doubled. The price of good 2 stayed the same. Calculate the CPI income adjustment. Calculate the new optimal bundle. And lastly,..
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