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What is the theoretical significance of the Adaptive and Rational expectation hypothesis? Explain with the help of the Phillips Curve, the effectiveness of policy actions when expectation formation is known. Examine the role of this for Reagan administration's success. Explain in detail.
The annual income from an apartment complex is $23587. The annual expense is estimated to be $2208. The apartment complex could be sold for $115756 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you ..
How does the analysis of risk aversion change when one allows for alternative models of decision-making then expected utility? How does subjective expected utility theory differ from expected utility theory? How might one elicit a subjective probabil..
The Chamley-Judd result of zero optimal capital taxation says that 0 capital taxation are required in order to maximize welfare at the steady state. The result is 30 years old. Still assuming that we only care about the steady state, what's the liter..
One year ago you purchased a two-year bond at a discount for $900. It has a par value of $1000 and one year left until maturity. You have one interest payment of $50 at maturity. If the interest rate is 5% per year, what would be the capital gain or ..
Draw the market supply and market demand in one graph. Next to it, draw the situation of one firm, with the average total cost, the marginal cost, and the price (which under perfect competition is the marginal revenue).
Do you agree with the US automakers' assertion that having to pay healthcare and post-retirement workers to the labor force negatively impacted US comparative advantage in the auto industry? Why or why not?
If you were the leader of your country and you had control of fiscal and monetary policies, what would you likely do with the use of fiscal and monetary policies before the next general election?
Anti-poverty programs
According to studies undertaken by the Department of Agriculture, the price elasticity of demand for cigarettes is approximately -0.3 and the income elasticity is approximately 0.5.
Assuming which the budget stays the same except for the interest on the debt for 10 yrs which will be accumulated debt
After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological chang..
Illustrate what advice would you offer Kyle also Chad when they are ready to present their business plan to a banker.
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