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The government is concerned about high rates of unemployment. To spark hiring, it provides tax incentives for the businesses to invest in new capital projects and stimulate job growth. If the sole concern is adding jobs, use the Hicks-Marshall rules of derived demand to determine whether or not this will be an effective public policy. Are there any dangers?
In the absence of a binding and enforceable agreement, determine the dominant strategy for AMC. c. Determine the dominant strategy for SAMI. d. If the two firms can enter into a binding and enforceable agreement, determine the strategy that each fi..
Bank of Japan launches negative interest rates Feb 16, 2016 Central bank encouraging banks to lend, businesses to invest and savers to spend. What are the Central bank’s objectives of launching negative interest rates? Explain carefully using diagram..
Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like?
Two manufacturing firm, located in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return empty. Each driver costs $275 per day with benefits (the round trip takes all day) and each firm has truck o..
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
Assume that the government places a 50 percent tax on widgets. Neither the demand for widgets or supply of widgets is perfectly elastic or inelastic. Draw a graph showing how the tax will affect the market. Where does the incidence of the tax lie? Ex..
List several ways that people and businesses in the green movement are participating.
The city government is losing millions of dollars on the system of mass transit (buses and subways). The government proposes to increase the fare of a ticket by 20% and they have asked your advice. You know that the price elasticity of demand for mas..
Describe the macro-economic conditions that have led to the current oil price. You will be graded on your understanding of the macro-economic variables, their specific quantifiable variances, and the motivations of the actors that led to these condit..
Describe how free market features could be introduced to help alleviate the social problem through free market operations of supply and demand. Discuss the risks of introducing market mechanisms of supply and demand in situations where.
Espn currently pays the nfl$1.1 billion per year for eight years for the right to exclusively televise Monday night football. What is the net present value of this investment if the parent Disney company has an opportunity interest rate equal to its ..
Suppose that the learning effect coefficient in the production of wrist watches is -0.2. If the average cost of producing the first watch is $100, what will be the average cost of producing the 40 th watch?
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