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Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer payments $50 billion lower. Using these estimates, what was the cyclically adjusted budget deficit or surplus for the year?
When government becomes heavily involved in tax-transfer activities, how will this involvement affect economic efficiency.
Raising tariffs on imported goods in order to reduce our trade deficit with other countries, (i.e. NXUSA
In what way (or ways) is the current Knowledge Revolution a child of the Industrial Revolution? Is this a new revolution or simply an extension of the 18th-century revolution? Given the history, is it perhaps more appropriate to call the current revo..
A price-weighted index consists of stocks A, B, and C which are priced at $27, $11, and $18 a share, respectively. The current index divisor is 2.24. If stock B undergoes a 1-for-3 reverse stock split, the new index divisor will be:
Calculate (to one decimal place) the unemployment rate, the employment-to-population ratio, and the labor force participation rate. In addition, please calculate what the unemployment rate would have been if individuals who were involuntarily employe..
The main determinant of elasticity of supply is the: Based on the concept of price discrimination, which of the following is NOT likely to occur?
Explain by how much would it have to increase government purchase to achieve this goal.
show the impact of the expeted future in gasoline prices on the current demand for gasoline by shifting the demand curve on a graph.
RAND study found that the income elasticity of demand for dental care is 0.15. Over the last one decade, income of the population has increased by 21%. Therefore, the income effect alone should a)Increase the demand for dental care by about 3% b)Incr..
According to Bacon, the objects of scientific inquiry were phenomena that could be found by unaided senses. Thinking of present day today, we live in a world with advanced technology and super machines, would Bacon change his views if he were alive? ..
Stigler argued that the variation in fees increases as buyer information decreases. Suppose you observe that each seller in a market is charging the identical price. What potentially conflicting inferences can you draw?
Many economists point to moral hazard as the primary reason underlying rising health care costs in the United States. How does price elasticity of demand influence the moral hazard problem? Explain how an insurer could reduce the scope of the moral h..
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