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Imagine that you are the Chair of the President's Council of Economic Advisors. You need to prepare a briefing for the president on the status of the economy. Write a 1-2 paragraph on how the economy is generally doing. (For instance, determine if we are experiencing growth or decline)
Elucidate what term do economists utilize to describe this second outcome
What is its sustainable growth rate. Illustrate what must its profit margin be in order to achieve its sustainable growth rate.
Explain how is the aggregate supply curve different from the supply curve for a single good like pizza.
"Because of market failure, we need a big government intervention to help appropriate the scarce resources to make sure that everyone is taken care of." Do you agree Take a position and provide your rationale.
Illustrate what happens if the government is trying to stimulate the economy with their spending, but this leads to a greater output than projected.
An economy consists of three workers: Larry, Moe, and curly. Each works ten hours a day and can produce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash one car; Moe can either mow one lawn or wash two..
Describe arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
Show how a UK exporter can avoid exchange risk by covering in either the spot market or the forward market. When will the exporter be indifferent between these two forms of cover.
Assume that the economy is currently in a recession. If policy makers take no action, how will economy evolve over time? Describe in words and using an aggregate demand diagram.
Calculate the equilibrium real wage rate and the equilibrium quantity of labor. Suppose that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0. Compute the real wage rate.
What were the two main competing arguments (i.e., one pro, one con) made with regards to whether or not AT&T and T-Mobile should have been allowed to merge Do you think the two should have been allowed to merge
Clarify the factors that led to the change in supply or demand within the article and describe what occurred to change the demand.
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