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With the disappearance of the former Soviet Union and the end of the Cold War, the United States became the world's only superpower and no longer engaged in an intense competition to build up its military. As a result, in the 1990s Congress and the White House had the opportunity to reduce the military's share of the budget and spend more funds for nondefense goods. This situation was referred to as the "peace dividend." Now consider that the need to combat terrorism diverts resources back to military and security output. Does a peace dividend or a reversal to more military spending represent a possible shift of the production possibilities curve (new curve) or a movement along it(going from one point to the other on the same curve)? Analyze why and support your analysis with a graph
What is the current stance of monetary policy? (Note that policy will be described in terms of increasing or decreasing the federal funds rate as opposed to increasing or decreasing the money supply.)
Explain how you could make a profit from this situation. What would be your profit per bushel of rice If other people exploit the same opportunity, what would happen to the price of rice in Japan and the price of rice of rice in the United States..
Amos McCoy is currently raising corn on his 100 acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit Why or why not
Construct a tax-subsidy revelation scheme such that it is a dominant strategy for each party to report truthfully their private information.
The initial price of a cup of coffee at a local gas station on is $1, and at that price, 400 cups are demanded each day. If the price falls to $0.90 a cup, the quantity demanded will increase to 500 cups a day.
Henry needs a car for going to law school. He needs the car for three years. He can buy or lease a new Honda Civic.A lease requires $3,000 at the signing and $160 per month each of the following 36 months.
Fill the blanks in the following table. Did the real value of welfare payments increase or decrease over this period?
Solve the problem for I (income). The impact on income of an increase in government spending equal to 100. Using the original data, compute the impact of a decrease in taxes equal to 100. Explain why the results are different.
To save money, they can put up with some marks and stains. The frugal students are only willing to pay a premium of $8 for a new book instead of a used book. The remaining 300 students are fastidious about their textbooks.
By assuming there is no change in the level of the MPC and MPS and planned investment jumps by 200 and is sustained at that higher level, recomputed the table. What is the new equilibrium level of Y Is this consistent with what you compute using t..
Calculate how much total spending as a percentage of GDP has increased since the 1960s.
There are two bags, each each containing 100 ping-pong balls. Bag A contains 100 red balls and no black ball, and bag B contains 20 red and 80 black. you are are blindfolded and reac into a bag.There is a .5 probability it is bag A .
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