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What is a recessionary gap? What are effects of this gap on the price level, real output, and unemployment? Explain
300 words
Illustrate why does the GDP deflator give a different rate of inflation than does the CPI. Illustrate what is the difference between a medium of exchange and a store of value.
Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.
This question may require some research. The US-Mexico Bracero Program was eventually opposed by:
Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week. On a single graph, draw t..
Describe the size of public sector borrowing/public sector debt requirement. Autonomous consumption is 10 billion the marginal propensity to consume.
Suppose that a second worker became available. Elucidtae the resulting change in production possibilities. Now what would be the opportunity cost of sanding two floors.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find out that consumers won't buy it because they don't like the taste. From an economic prespective, the company should?
Assume which two people, Michelle also James every live alone in an isolated region. They every have the same resources available also they grow potatoes also raise chickens.
Supply is given by the equation P=10+0.05Q. Demand is given by the equation P=600-0.05Q. Calculate the price and quantity at which the price elasticity of demand is equal to -1. How might you describe that point?
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Choose one and also show a picture of this in a AD..
A woman made 10 annual end-of-year purchases of $1500 worth of common stocks. The stock paid no dividends. Them after holding the stock for 5 years, she sold all the stock for $38,000. What interest rate did her investment earn?
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average.
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