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a. What are the fiscal policy instruments? What are the fiscal policy types?
b. Do you agree with the following statement: “Even if the Congress does not pass anynew laws to stimulate the economy, the fiscal policy is still facilitating the economicrecovery?”. Explain what this statement implies. Use the appropriate terms to describethe mechanics of the fiscal policy in this situation.
c. Currently the economy is facing an inflationary gap and the government is extremelyconcerned with the rapidly raising prices.
i. Draw an AD-AS model showing this gap (actual real GDP is $670 billion,potential output is $650 billion).
ii. MPC in this economy is 0.6. What instrument should the government use to closethis gap? Calculate all appropriate multipliers. Calculate, explain, and comparethe effect of each instrument on the budget balance.
Problem: Consider a monopolist who has a constant marginal cost of MC = 20. Find the profit-maximizing quantity and price if the inverse demand curve is P = 620 - 25Q.
q.the demand schedule for sugar isprice quantity demandeddollars per kilogram millions of kilograms per year3 205 167
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present v..
Is it ever morally acceptable to use lethal force (ex. pressure cooker bomb) against as civilian who is oppressing you politically and economically but is not life threatening your life? why or why not?
Consider a perfectly competitive market with many homogenous exercise gyms. Exercise gyms have learned that customers tend to use the gym less often than the customer anticipated when she signed up.
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
Choose one company from the market structure of monopolistic competition and one company from the oligopoly market structure and state which characteristics make this company fit these market structures.
Research and development (R&D) tax credits:
The demand equation for a certain type of product is given by the formula p=200e^(-0.1q) where p is the price in dollars and q is the quantity sold per month. Find the Revenue Function (in terms of quantity). Find the Marginal Revenue function (in te..
A car manufacturer claims that its vehicles average at least 25 miles per gallon.
Liberals believe that __________ is NOT leading toward a more cooperative future
According to the Wall Street Journal, the US Department of Commerce has "decided that display prices by Japanese companies in their home market may be artificially low. Rather than comparing US prices with Japanese prices, Commerce is now coming up w..
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