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Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession? What is the 'Crowding Out' effect? What are the 'Automatic Stabilizers'? What impact do they have on the economy?
The Law of Demand states that the demand for a product is inversely related to the price of such product. Therefore, the demand for a product is considered downward sloping. This implies that quantity demanded increases when price decreases. Is th..
What is Nash Equilibrium output for his supposing that the two firms choose their production quantities simultaneously?
Aaron Hank is a star hitter for the Bay City Baseball team. He is close to breaking the major league record for home runs hit during one season, and it is widely anticipated that in the next game he will break that record.
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
Looking to raise profitability in perfectly competitive marketplace. How to efficiently plan production?
Explain how does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns.
Assume that initially equilibrium was 200 units and that this was also full employment level of income
An investor has two investment opportunities each involving an outlay of $10,000. The present value of possible outcomes and their respective probabilities are (a) calculate the expected value of each investment. (b) draw a bar chart for each in..
Explain why do people who work at investment banks earn so much. What is the justification for capital requirements imposed by bank regulators.
What nation would you choose to trade with and why.
Full employment income is estimated to be $11,000. The current interest rate is estimated to be 4.178 recent. While last year total business investment spending was $900.
Explain what, in turn, will happen to income. A government official suggests increasing government purchases by $100. What is the main benefit of this proposal What is the main drawback of this proposal
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