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1. Distinguish between the expenditure lag and the policy lag in stabilization policy. Does monetary or fiscal policy have the shorter expenditure lag? What about the policy lag?
2. Explain why their contrasting views on the shape of the aggregate supply curve lead some economists to argue much more strongly for stabilization policies to fight unemployment and other economists to argue much more strongly for stabilization policies to fight inflation.
Determine the expected signs of the various coefficients and explain your reasoning.
Tell one story that explains the negative slope of a simple demand curve and another story that explains the more complex aggregate demand curve (AD).
What are M1 and M2? What impact would this action (pulling money from checking accounts) have on the size of the M1 and M2 components of the money supply?
John Smith bought a house for $100,000 two years ago. The down payment was $20,000 and the remainder was financed at 6%interest ratefor 15 years. The annual inflation rate for the past 2 years has been 2% and it is anticipated.
The market for taxi services in a Midwestern town is monopolized by firm 1. Currently, any taxi services firm must purchase a $40 thousand "Medallion" from the city in order to offer its services. A potential entrant (firm 2) is considering enteri..
Calculate the tax revenue generated, and also the deadweight loss.
How do you find AP, MP, TVC, TFC, TC, AVC, AFC, and ATC if the problem gives you a list of # of people doing the labor, quantity produced, fixed costs, and wage rate for example, wage rate is $100 a day, firm has $200 in fixed costs.
Explain the pricing strategy for firms producing joint products and give examples of both the case of fixed proportions and the case of variable proportions.
Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two firms, is contemplating its capacity strategy, which could be either "aggressive" or "passive
Is it fair? Explain why it might illustrate the big tradeoff.
If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
Is the superior performance of China explicable on other competitive principles like the "catch-up" effect?
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