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1. What fiscal policy would you recommend to eliminate the inflationary or recessionary gap in the following scenarios? You must show your calculations to get full credit.a. Recessionary gap of $800 with a marginal propensity to consume of 0.5.b. Inflationary gap of $1,500 with a marginal propensity to consume of 0.8.c. Potential GDP is $10,200, real GDP is $9,000, and the marginal propensity to consume is 0.2
The inequity of players across teams would make the sport less interesting to fans and thus destroy the league. Do you think the owners' argument is correct? Explain.
Merriwell Company has a virtual monopoly in ultra high speed computer market. Merriwell has recently introduced a new computer that will be used through satellite installations around the world.
Write a conclusion that summarizes the economic and environmental impacts of the proposed actions.
Missing a hypothetical question on opportunity costs is inconsequential. Managers can destroy significant value if they make mistakes in evaluating opportunity costs in their decision making.
Controlling the money supply is sometimes advocated as an appropriate policy for controlling inflation. What implications do different assumptions about the relationships between M and V, and M and Y, in the equation MV =PY have for the effectiveness..
Will the author be happy with the book company's output choice? Does the selected output maximize the joint profits (for both the author and company) from the book?
If there is a law restricting late-night parties then what the college students do? Can there be an efficient outcome?
1.At what phase of the business cycle is the average duration of unemployment likely to be the highest? Explain
In most restaurants, waiters receive a big portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15 percent tip for parties of eight or more.
How many units of each monitor should the retail store order each week to maximize its weekly profits and meet its weekly demand?
If a developing country has a comparative advantage in primary products, should the government allow market forces to dictate the pattern of trade?
Suppose the firm has 20 machines and is producing its current output using an optimal K /L ratio. How many people does Mountain Springs employ? Assume each person works 40 hours a week.
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