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Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions and include the trade-offs or opportunity costs.
Elucidate a firm competes in the market. Does the firm engage in price or non-price competition
The utility function of a worker is represented by U(C,L) = C X L, so that the marginal utility of leisure is C and the marginal consumption is L.
The supply curve shows a positive relationship between price and quantity supplied. Elucidate role does the loss of increasing opportunity cost play in this relationship? What role does profit play in this relationship.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.
Illustrate what has happened to the price and quantity of the substitutes and complimentary goods/ services for your selected product over the last year.
Ellucidate in words the effects of the rebate on supply and/or demand and its effects on quantity and price.
Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..
Illustrate what is the difference between a movement along and shift of the demand curve. Show the impact on the equilibrium price and quantity that results.
Explain why is economic growth important also annual growth rate be of great significance over several decades.
Illustrate what do you see are the economic pros and cons of the North America countries including Canada and Mexico get from adopting a common currency.
What do you think about current and projected budget deficit [over 500 Billion this year and coming years] and do you support Bush's economic policy to cut tax and run the Federal government through lending?
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