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Suppose the government aims to stimulate the economy as the result of the recessionary gap. Explain which macroeconomic policy action you would recommend. Give both the direction and the magnitude of your policy action.
You all hear on TV every day or so that the United States customers has been holding up and kept our economy going.
What is monopolistic competition and why/where is it different from perfect competition Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing.
As an employee of the World Bank, you have been asked to research economic concern in a South American country and write a report
Payroll Tax- You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction.
For each level of output, calculate this manufacturer's marginal cost (MC) (For convenience, place the Marginal Cost between 0 and 1 boat on the second row, the Marginal Cost between 1 and 2 boats on the third row, and so on)
Assume the market for computer chips is dominated by two firms: Intel and AMD. Intel has discovered how to make superior chips and is considering whether or not to adopt the new technology.
Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.
Monetary expansion causes the present account balance to increase in the short run. Describe this statement. Is the same true for fiscal expansion.
Compute the new macro equilibrium under the assumption that the central bank does not respond to this shock and explain how the central bank could choose to validate this shock. Alter the AD curve to build this "validation" into the model and comput..
You are a financial adviser to a U.S. corporation that expects to receive a payment of 40 million Japanese yen in 180 days for goods exported to Japan.
Suppose the present market conditions of Microsoft Corporation.
Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.
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