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You are the chief economic advisor of the president of Dreamland. Right now the country has unemployment of 7.5%. The country has suffered a sever recession a few years ago and it is showing some signs of slow growth lateley but a lot of people are still out of jobs. Federal annual budget deficit of $1 tirllion a year and a national debt of $16.5 trillion. It's currency also has lost a lot of value against major foreign currencies creating a backlash from other major trading partners recently. Some manufacturing companies are moving out of the country in search of cheap labor and the ones at home are not doing as good and some big ones like auto are trying to cope well after coming out of bankruptcy. Energy, food and commodity prices are also relatively high and going higher, leading to some inflationary pressure in the economy and the housing market is in trouble with lot of foreclosures leading ot a lot of Bank failures. Dreamland is also facing a huge trade deficit and going through mandatory sequestration. The President needs advice on how to turn things around quickly.
a. Advise the President in detail on what he should do to turn the economy around.
b. What would happen to his attempt to attain a blanaced budget?
c. How would the President tell that his economy is approaching equilibrium or getting better?
Compute the Learner index if the marginal cost of producing Lipitor is $0.30 per pill. Does the Lerner index make sense in this situation.
compute the marginal products associated with K, L, F. Illustrate what is American's MRTS between K and L.
Assume that the society decided to reduce consumption also increase investment. Explain how would this change effect economic growth.
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
He starts this year with nothing in the bank and ends next year with nothing in the bank. Draw his budget constraint in E1 - E2 space.
Investigate Starbucks Coffee Company commitment to and performance in sustainable business and discuss Starbucks Coffee Company in terms of sustainability, addressing the following:
Illustrate the use the orange points square symbols to plot the portion of the supply curve that corresponds to prices where there is positive output.
If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay. Explain how much tax revenue is collected.
for what interest rate will the maximum number of housing starts be achieved?
Discuss the elements that make up Australia's Current Account. Outline the cyclical and structural factors that have caused Current Account Deficits in the last decade.
Some businesses will examine their pricing structure and modify it in order to maximize revenue, either by raising or lowering price. Why organization chosen lower prices to increase revenue.
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