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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.
Assume Winter Sports a hypothetical French retailer of snowboards needs to order 5,000 snowboards made in the United States.
Assume the situations faced by the subsiquent individuals. Who gains and who loses.
What is Megabus's prot from price discriminating? If Megabus could not price discriminate, they would have to set one price for both students and non-students. What demand curve does Megabus face if they cannot price discriminate? What is Megabus'..
Draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP.
Elucidate proportion of the variation in sales is explained by the independent variables in the equations
Describe the implications of this economic forecast and the income elasticity of demand for the pricing strategy.
Assume banks install ATM on every block and, through making cash readily available, decrease the value of money people want to hold.
Suppose you are a manager of a monopolistically competitive company, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2
Is there a way in which a plan could provide incentives to the Farm members that would have a good chance of raising productivity and lead to increased agricultural output while at the same time eliminating subsidies?
At each level of output compute savings. At each level of output, compute unplanned investment (inventory change). What is likely to happen to aggregate output if the economy were manufacturing at each of the levels indicated?
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?
A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = 1 - (x1 4)^2 - (x2 3)^2
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