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Fiscal policy refers to the use of government expenditures or tax policy to influence the aggregate demand for a specific purpose. In the case of the recessionary gap, explain how government expenditures could be used in this instance to stimulate the economy. What is the government expenditures multiplier (the specific formula) that is relevant in this case?
Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
Discuss how absolute advantage and comparative advantage differ? Kyle can read 20 pages of the economics in an hour. He can also read 50 pages of history in an hour. He spends 5 hours pre day studying. Draw Kyle's production possibilities fron..
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
A symetric information can have deleterious effects on market outcomes. Discuss a few tactics that managers can use to overcome these problems.
In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
Suppose that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
Explain how an individual's Demand curve for medical care will change (i.e., shift) if the following things happen (consider each change individually, holding all other possible influences constant.
Which type of firm faces the most elastic demand curve? In which of market structures are firms able to earn both accounting and economic profits in the long run?
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