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1. Suppose the government decides to decrease spending and increase taxes in an attempt to decrease its deficit. Is it possible for the Fed to ease the macroeconomic effects of the spending and tax changes? Explain.
2. If the government implements a spending and tax policy in which it promises to neither increase nor decrease spending and taxes, is it still possible for the budget deficit to increase or decrease? Explain.
3. Explain why the implementation lag is generally longer and the response lag is generally shorter for fiscal policy than they are for monetary policy.
Explain four problems with the argument that trade protection is needed to protect American jobs. b) Describe the economic reasons why businesses use offshoring.
Explain why should you, as a future employe, be concerned about the downward trend in labor productivity increases that have been observed since the early 1970s.
Outdoor Sports Corporation, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45 percent chance of occurring,
Assume that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed following levels of production corresponding to different numbers of workers:
Will recessions starting in the US be more easily transmitted to Canada under a fixed or flexible exchange rate system. Use the appropriate graphs to illustrate your discussion.
Which of the following is an example of fiscal policy being used in the US?
The Wall Street Journal reports that the rate on three-year Treasury securities is 5.25 percent and the rate on four-year Treasury securities is 5.50 percent. The one-year interest rate expected in three years
The employees of Abs “R” Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company.
When a company chooses their distribution channels, they must keep in mind that each channel member must be given the opportunity to be profitable. The main elements in the "trade-relations mix" are Price policy, Conditions of sale, Distributors' ..
Explain the difference between saving and investment as defined by a macro economist. Which of the following situations represent investment? Saving? Explain.
A town has a bakery that sells bread and a cheese shop. It costs $1 to make a loaf of bread and $2 to make a pound of cheese. If the bakery's price for a loaf of bread is p1 and the cheese shop's price for a pound of cheese is p2.
Determine the current GDP growth rate for the United State? Analysis the trend over the last few years. What stage of the Business Cycle would the United State economy be in currently given the trends?
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