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Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that all the variables be timed perfectly.
Part 2: Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?
Barbara’s utility for 2 goods X and Y is given by U(x, y) = x^0.6y^0.4. Let I denote income and px and py denote the prices of good X and Y respectively. What is Barbara’s gain in consumer surplus if price of good X decreases from $20 to $15
What individual product decisions and product line decisions has MCC made for Smart Car. Why did it make these decisions. What marketing recommendations would you make to MCC.
hould the measure of imports used in the GNP accounts therefore be defined to include only imports of FINAL goods and services from abroad. What about export.
Explain by how much will aggregate demand at current prices shift initially (before multiplier effects) with a$70 billion increase in government purchases.
A 50 percent increase in cigarette prices would cut overall consumption by 12.5 percent, with even greater declines in smoking among minorities and young adults, federal health experts said Thursday. The Centers for Disease Control and Prevention (CD..
Given economic conditions today, do you suggest expansionary fiscal policy or contractionary fiscal policy. Illustrate what effect would your suggestions have on production and employment.
prisoners dilemma is a game that has been and continues to be studied by people from a variety of disciplines from
q.assume your company is considering three health insurance policies. the first policy requires to tests and covers all
Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
Explain how should the United States Supreme Court interpret the United States Constitution.
compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950s. applying the
Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2.
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