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The political business cycle refers to
a) the fact that about every four years some politician advocates greater government control of the Fed.
b) the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
c) the part of the business cycle caused by the reluctance of politicians to smooth the business cycle.
d) changes in output created by the monetary rule the Fed must follow.
Select an economic problem or theory and discuss how dummy variables could be applied. Determine the value that dummy variables would add to your analysis (think outside the box on this one – avoid obvious examples like gender, race, etc.).
Suppose two countries, A and B, with the same production function Y = K? L1?? . The value of is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Show that with price-taking firms the share of labor must be 1? Compare both e..
Given the technology and the amount of other resources available, the position of the demand for labor depends on the
What is dual cut off method of the multidimensional poverty index? based on the three case studies of ' portfolio of the poor' (2009) did you find any poor of Bangladesh, india and south Afirca who suffer from any dimension of poverty? if yes, explai..
Choose a firm that sells their products through more than one channel of distribution. (For example, Miller beer is sold through grocery stores, convenience stores, liquor stores, restaurants, bars, and stadiums—each is a different channel.) Address ..
What relationship, if any, exists between a firm’s market share to their average costs in a competitive market? Why might firms with cost advantage not expand indefinitely?
Over the last decade, several firms have entered this industry and, as a consequence, Forey is earning a return on investment that roughly equals the interest rate.which market structure best characterizes the industry
what is the value of the money multiplier given each of the following sets of values for CUR and RES? what would be the equilibrium value of total money stock assuming a monetary base of $10 trillion?
Some companies raise their workers' pay by giving raises, but others prefer to give one-time bonuses instead. Think about two steel mills facing a big two-year drop in steel demand. In one steel mill, workers have received pay raises every year for f..
A firm has the exogenous cost function C(Q) = 354Q-30Q^2 + Q^3. Compute the marginal cost function. Compute the average cost function. For the remaining parts, assume that the demand for the firm’s product is D(P) = 25- √P. Calculate the inverse dema..
Firm 1 and Firm 2 compete in an industry and must decide whether to introduce an upgrade to their existing products. The nature of the strategic interaction is described by the game box, where (Y) means “upgrade” and (N) means “do not upgrade”. Draw ..
You are to write a paper, convincing the president of the company of your conclusion and explaining what the company's pricing strategy
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