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Consider the difference between the New Classical and Keynesian model regarding macro policy. What is the driving force creating growth in the economy in each model? Why does each one say that item creates growth? Explain. Why are the two models exclusive to each other in most part? Explain. Why do Keynesian solutions to the economic downturn not work in the New Classical model? Explain.
Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
Illustrate what happens to the dollar price of the dinar. Does the dinar appreciate or depreciate relative to the dollar.
What is the maximum per unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction costs c. Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary but sellers offer to rebate pa..
A rural stretch of a two lane road in Loudoun County is to be refurbished or a new route established. The existing road, E, will cost $3,000,000 and the new route, N, will cost $5,000,000. Annual O&M costs will be $120,000 for E and $90,000 for N...
A colleague tells you that he can get a business loan from the bank, but the rates seem very high for what your colleague considers a low risk loan. a. Give an adverse selection explanation for this, and offer advice to your friend on how to solve ..
Suppose that in small open economy the following describes investment demand, private saving, and government budget deficit.
Describe when economists with different political views do cost/benefit comparisons, they often reach different conclusions. If their analysis is based on objective costs and valid techniques, why wouldn't they reach similar conclusions, even if t..
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
The UAW labor contract with General Dynamics expired in October 2001. IN the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.
Illustrate what does the law of increasing opportunity price say and what is its implications regarding steel and textile manufacturing.
A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.
The Portland Sea Dogs, AA affiliate of the Boston Red Sox major league baseball team, have enjoyed a surge in popularity.
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