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1. Why are savings and investment so important for economic growth? How do savings and investment affect present and future consumption? Explain.
2. How does the Production Possibly Curve behavior when the economy is growing and when the economy is sinking?
Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.
Pick one company and analyze that company. Identify one concept from all of the following 1. Basic economic relations 2.Statistical analysis (history/competition)
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..
Why is fiscal policy slow to affect economic growth? Why does monetary work so much quicker to boost the economy than fiscal policy? Why does fiscal policy often contradict monetary policy and often hinders economic growth during recessionary periods..
Describe the long-term trends in inequality in the United States using the available measures. What are possible explanations for these long-term trends.
Why do brides spend so much money on wedding dresses, whereas grooms often rent cheap tuxedos, even though grooms could potentially wear their tuxedos on many other occasions and brides will never wear their dresses again?
If the original supply curve of cocaine on the streets was horizontal, what is the net effect of police activities on the market for crack in this city. Compute the value for p that prevails before police intervention in the market.
Illustrate what does the area EBCD represent. Provide a full explanation of the concept that is shown in that area.
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
As internet banking spreads, velocity begins to increase at a rate of 3 percent per year. What will happen to the rate of inflation? How could the ECB offset the impact on inflation.
Illustrate what are some of the downside risks also potential problems involved when using fiscal policy.
Using the data provided above, determine if the Hernandez Corp. is using a cost minimizing combination of inputs. Explain your answer/show your work. If your answer is no, how should the input combination be adjusted?
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