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If automatic stabilizers change the federal budget balance by 70 billion for every one percent change in Real GDP growth what will happen to the federal budget balance at the economy falls into recession of -3 % from a growth path of + 2%
What is the present worth of the following cash flow stream? Assume 8% interest and an initial purchase price of $30,000 is included (4 pts)
The term ________ refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product.
Looking at the last word of the chapter "squaring the economic circle", what is the central economic idea illustrated in this piece? how does he explain the idea? how does the main idea related to economic recessions, and how does this idea relate to..
A convenience store manager earns a base salary plus small bonuses for each of ten different possible monthly milestones he meets. Typical managers can meet half of these milestones. Do they miss the others by a little or a lot?
Say a consumer is choosing between red wine and white wine. The price of red wine is 20 and the price of white wine is 10. If the marginal rate of substitution is 1, and if red wine is on the horizontal axis then the consumer is purchasing:
Based on the Solow model’s conclusions about population growth, comment on the effects of immigration on a country’s: (a) aggregate output level; (b) capital-labor ratio. (Note: in this case we’re concerned with the level of population, rather than t..
Assume Fed expands money supply, however because public expect this Fed action, it simultaneously raises its expectation of cost level. Illustrate what will happen to output and cost level in short run.
A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for t..
Graph these functions and find the non-zero equilibrium. Prove that the equilibrium at (0,0) is not stable. Suppose that school inputs improve by one unit, from 10 to 11. What is the immediate impact on education (before health can adjust)? What is t..
You should recommend that the project be rejected because, although its NPV is positive, its MIRR is less than the WACC, and that indicates that the firm's value will decline if it is accepted.
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
Historical data suggests that in the athletic shoe industry, the price elasticity for shoes is approximately -0.67. Explain what price elasticity is, and how to interpret the stated elasticity for athletic shoes of -0.67. Using the price of $100 and ..
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