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Description of Fiscal Policy
The U.S. congress is currently debating the new budget. Most Republicans want to reduce federal spending. Democrats do not want to reduce federal spending by as much as Republican do. Choose a side. Should federal spending be drastically reduced? Why or why not? Support your responses with the theories and reference.
In 1971, Congress conducted headings on emergency loan guarantee legislation for Lockheed Corporation, which was in the middle of a severe liquidity crisis due to losses on a number of military contracts.
Construct a table shoeing Grey's marginal sales per day in each state. Calculate Grey's maximum monthly commission income.
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How would you show what happens with equilibrium income if agents suddenly lose confidence and decide to spend less, even if their income has not changed?
Why the price of computers dropped as their power and features has have increased?
How does the free rider problem explain why telephone companies are usually successful in getting permission to raise their rates?
Discuss the likely sources of the economies of scale that underlie the large size of these firms. [Note: the stocks of private firms are not traded on public stock exchanges
A firm uses a single plant with costs C = 160 + 16Q + .1Q 2 and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?
For each of the following pairs of goods, would you expect the cross-elasticity of demand to be positive or negative? Large (in absolute value) or small? Defend your answers:
What types of inefficiencies and/or externalities arise in each renewable resource case that interferes with sustainable and efficient management results?
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
Suppose that the economy is short of its full-employment (potential) level of GDP, assumed to be $14,000 billion, by $500 billion.
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