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1)Which of the following is the best example of an automatic stabilizer?
A) Welfare Payments
B) Foreign aid
C) Defense Spending
D) Highway construction
2)Unemployment compensation is an example of a (an):
A) discretionary stabilizer
B) countercyclical stabilizer
D) procyclical stabilizer
E) seasonal stabilizer
F) automatic stabilizer
3)The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
A) rational expectations school.
B) neo-keynesian school
C) supply-side school
D) new classical school
E) classical school
4) As the marginal propensity to consume (MPC) increases, the spending multiplier:
A) increases
B) decreases
C) remains constant
D) becomes undefinable Economics
When GDP is high or increases does it indicate higher income If so when GDP per capita increases why do saving ratios decrease when savings is income induced ie a rise in income increases savings and a decrease in income decreases savings
The Wall Street Journal reported that recent law school graduates were having a very difficult time getting jobs in the legal profession. Many law schools said that ten to 20% of their graduates still had not found jobs.
Given your answer above, explain whether, all else equal, the supply of the IRP increases, decreases, or remains unchanged. Explain the reason for your answer and depict it on your graph above.
Assume there is an imperfect capital market. Draw a graph to show the optimal years of schooling for an individual with high access to funds but of low ability and an individual with low access to funds but with a higher ability level. Which ind..
America's Water Meter Industry is dominated through 4-companies: Rockwell, Badger, Neptune and Hersey. Rockwell has 35 percent market share, and the remaining share rest.
a. What are your views regarding economic forecasting? In particular, share any experiences you may have had with business forecasts for company budgets. b. Discuss some of the important criticisms of the forecasting.
Assuming that overall taxes are cut by 10 percent across the board. What's likely to happen to equilibrium output and prices How will the tax cut affect government revenues in the new equilibrium
Firm Z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. Its cost function is C=50+4Q+2Q^2. The associated marginal cost is MC=4+4Q, and the point of minimum average cost ..
As in part A there is a 50% chance the share market crashes. If John maximises expected utility, what value of ß should he choose?
Describe why personalized pricing or 1st degree price discrimination is g enerally more profitable than menu price. Why, if this is the case, do companies use menu pricing?
Discuss ways firms establish barriers to entry and explain how they benefit firms but not consumers. Give an example of a law or regulation that limits the ability of firms to establish barriers to entry and an example of a law or regulation that ..
Mention five ways you are affected on a daily basis by government intervention in the market. For what reason might government be involved? Is that reason justified?
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