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Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve? Explain why the shift may be higher or lower than the original $40 billion.
Do you think the argument against redistributing income through income taxes based on reducing economic efficiency is a strong one. Provide an example where a business did not expand because the possible taxes on the profits due to that expansion.
If neither company adopts the side impact airbag technology, each company will earn $0.5 billion (due to lost sales to other automakers). If one company adopts the technology as standard equipment and the other does not, the adopting company will ear..
Why does a government place price ceilings, such as rent control, on some "essential" goods. to encourage an increase in supply of necessary items, to limit the impact of equilibrium pricing or else.
Illustrate what has happened to the value of the real exchange rate over time. What is the significance of this change in value.
As you start your research, you realize your company would make a significant profit from doing business in China.
Most customer oppose these laws because they find Sunday afternoon a good time to shop, however retail trade associations support these laws.
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's. What type of marke..
Explain how could government make a choice among two health effects.
Explain how much should Jet Blue charge for a Business Class ticket.
The New York Times cost $0.15 in 1970 and $0.75 in 2000. Average wage in manufacturing was $3.23 a hour in 1970 and $14.32 in 2000.
Let B1(hat) and B2(hat) denote the estimated regression coefficients from a sample of size n for y = x1B1 + x2B2 + u. Show that b1 = B1(hat) + (X1TX1)-1X1TX2B2(hat) where b1 is the coefficient estimate from the regression of y on X1.
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
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