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1) Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer payments $50 billion lower. Using these estimates, what was the cyclically adjusted budget deficit or surplus for the year?
2) How could the existence of an unemployment insurance system or other transfer programs have reduced the severity of the Great Depression?
Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expansi..
How is it possible that in perfect competition some firms have economic profits equal to zero while others have a positive economic profit. Can they have a positive consumer surplus? Isn't it a contradiction?
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
Which of the following is true regarding the extent of shareholder’s liability to corporate creditors? a.A shareholder is Liable to the corporation’s creditors to the extent of the value of the shareholder’s corporate shares b.A shareholder is Liable..
Gold cost $100 an ounce at the beginning of 1971. At the beginning of 2015, gold was $1200 per ounce. By what compound annual percentage rate has the price of gold increased over this period? State the answer as a percentage, to two decimal places.
The EU recently admitted the Eastern European countries. How do you assess the impact of the EU's expansion? What are the costs and benefits of the expansion for the U.S. economy?
Suppose a consumer's preferences can be represented by the utility function: U(X,Y)=X^3/5Y^1/4. Derive the function for the marginal rate of substitution holding utility constant. Derive the demand curves for the two goods, X and Y.
In a paper, analyze the relationships among total and average fixed cost, variable cost, and total cost. Address what happens to price and quantity with changes in demand and supply. You will need to identify then define the relationships.
q. real wages and productivity-are workers paychecks keeping up? over the long run historically real wages produce
There have been a number of papers in the literature emphasising the role and importance of network structure in economics, the equilibrium arising therein and the relationship between the topology and other graph properties and the equilibrium.
Manning, Inc. is the leading manufacturer of garage doors. Demand for residential garage door sales depends, of course, on the rate of new home building activity, which, in turn, depends on changes in income per capita. Calculate the arc income elast..
A sample of human resource executives was asked how their company planned to change their work force over the next 12 months. a categorical response variable showed 3 options: add employees, no change, lay off employees. Another categorical variable ..
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