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Suppose the economy is experiencing serious inflation.
a. What are the appropriate fiscal and monetary policies to correct this problem?
b. Draw the Ms/Md graphs and show and tell how fiscal policy works to correct the problem.
c. Draw the Ms/Md graphs and show and tell how monetary policy works to correct the problem.
In what situations will a court impose a strict liability standard instead of a negligence standard? Provide a real-world example of a strict liability case. Is imposing this standard fair? Are strict liability standards fair as a general rule?
In 1990, the GDP of Canada was $680 Billion dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars and the exchange rate was that $1 Canadian was worth..
According to Hayek, a social planner has no hope of matching the efficiency of a competitive pricing system because
Dwight and James are looking at these 2 jobs and will make choices. Job B looks more attractive by using simple arithmetic in a static world; but since these will occur in different periods, we know that the best way to evaluate each one is by gettin..
Under a system of fixed exchange rates and high capital mobility, is monetary policy or fiscal policy better suited to promoting internal balance? Why? Under a system of floating exchange rates and high capital mobility, is monetary policy or fiscal ..
There are 2 firms to consider from 2 different industries. A firm in industry A has MC of production = $100 and they know from historical experience that their Lerner index is 0.3. Determine the optimal price that both firms should be charging. Artic..
The substitution affect isolates the change in the consumption of a good caused by: The slope of the budget line represents. Given that income is $300, the price of good Y is $15, and the price of good X is $20. What is the vertical intercept of the ..
Suppose that both firms decide to collude (form one firm) and maximize profits as one entity. What is going to be the overall production level they choose and the profit they make, respectively
Which of the following is an example of adverse selection?
Elucidate before economic growth, there were too few goods, after growth, there is too little time.
If there are two firms in the market, what are their profits after taking into account the entry cost?
Soundscape Enterprises manufactures Sonoblast, a device that produces a high-pitched reminder to telemarketers that they have once again disturbed you just when you were sitting 1⁄2 down to dinner. Give the formulas for the short-run production funct..
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