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(Policy Lags) What lag in discretionary policy is described in each of the following statements? Why do long lags make discretionary policy less effective? a. The time from when the government determines that the economy is in recession until a tax cut is approved to reduce unemployment b. The time from when the money supply is increased until the resulting effect on the economy is felt c. The time from the start of a recession until the government identifies the existence and severity of the recession d. The time from when the Fed decides to reduce the money supply until the money supply actually declines.
Assume that the returns of these stocks are independent of each other. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.
The pharmaceutical industry has been subject to considerable regulation in bringing drugs to the marketplace. Discuss the benefits and costs to society from such a policy?
Analyze and discuss the roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita. Then discuss how governments can contribute, or discourage, long run growth th..
Assume that in your first job after graduating from college you live in a city where the price of food is PF and the price of housing is PH. You consume F1 of food and H1 of housing per year. Using both your graph and a written explanation describe h..
The income elasticity of demand measures, for a given price, the ________________ in quantity demanded divided by the ____________________ income from which it resulted. If a decrease in the price of one good causes a decrease in demand for another g..
Kalia is currently spending all of her weekly income purchasing the two goods that she likes hamburgers and fries. She is currently purchasing 10 hamburgers and 5 large fries. She receives 40 utils from her 10th hamburger and 20 utils from her 5th la..
Using economic concepts, describe why the policies toward CO2 and lead emissions from automobiles have been drastically different in the U.S. To do this, first describe the type of pollutant, the efficient allocation of each pollutant, the policy reg..
Explain why trash collection on campus is provided by the University, instead of by individual students and faculty members.
draw a supply and demand graph to illustrate the consumer surplus that occurs when the market is in equilibrium
Your weapons company, Top GunZ, sells fighter jets to two countries. The jets can be produced at a constant marginal cost of $10 million. The demand for jets in the two countries can be represented as: QA = 100 – 2p QB = 80 – 4p. Assume that the opti..
an additional $15 of investment projects in each successive rate of return range down to and including 0-5 percent range. Which of lines on above diagram represents these data.
How might increasing the level of government transfers reduce the size of the economic pie? Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productiv..
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