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An interesting paradox called the "Paradox of Thrift" arises when households become concern about their future and attempt to increase their saving. As a consequence of such action the overall economy will suffer. Explain. Do you agree with this assessment?
Identify two periods associated with the highest unemployment rate since 1970 - Visually inspect the graph in Part I.B andidentify the approximate period that corresponds to the highest value of the "misery index."
1.what factors are important in determining the length of the imitation lag and the length of the demand lag?
Use some economic science, empirical data and economic history to better help Sebastian understand the veracity of this Facebook message.
Explain how your policy would help increase aggregate demand. That is, does it increase C, I, G, or X? Explain what would happen to prices (i.e. inflation).
National Income statistics are used by governments of developing countries.
A firm, which is the only supplier of a good located in a particular town, is accused of engaging in anticompetitive tactics in order to protect its monopoly position in that town. As part of its defense, the firm has argued that the geographic an..
In the short run a firms cost of producing the hundreth unit of output is $10,000. If it makes just one more its $10,150. What is the marginal cost and average total for 101 units. Also average cost for 100 units?
Compute the amount of profit (ignoring exchange rate fees) that will be earned and the percentage return achieved.
What is the yield on a $1,000,000 municipal bond with a coupon rate of 8%, paying interest annually, versus the yield of a $1,000,000 corporate bond with a coupon rate of 10% paying interest annually? Assume that you are in the 25% tax bracket.
Describe the economic implications for the United States of the rise of China and India as significant economic powers.
Consider the following interaction between two entrepreneurs (players 1 and 2) who are working on a joint project, and a venture capitalist (player 3) who is a potential investor in the project. First, player 1 decides whether to devote high or lo..
Based on these indicators, describe the state of the U.S. economy in terms of the business cycle. Propose a monetary policy (contractionary or expansionary) that responds to current economic conditions. Be specific about which tool of monetary poli..
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