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Suppose consumer confidence falls as a result of a bursting housing market.
a) How is this factor change likely to affect the IS and/or the LM curve?
b) In response to this factor change, describe optimal fiscal policy.
An article in the Wall Street Journal reported that large hotel chains, such as Marriott, are tending to reduce the number of hotels that they franchise to outside owners and increase the number the chain owns and manages itself. Why would Marriott w..
The Chamley-Judd result of zero optimal capital taxation says that 0 capital taxation are required in order to maximize welfare at the steady state. The result is 30 years old. Still assuming that we only care about the steady state, what's the liter..
Assume that the pool of utilized textbooks grows further during the second year of the latest edition
Operating and maintenance expenses for a truck increase by $400/year for the first 5 years of operation. First-year O&M expenses are $2,400. The initial cost of a truck is $8400, estimated salvage value after 4 years is $2,400, and the salvage after ..
Explain how will the increase in unemployment benefits affect output and the price level in the short run and in the medium run.
Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property.What are the annual explicit costs for the firm described above.
Lego boxes: A box of Legos consists of complex bricks and basic bricks. The production function of Lego boxes is assumed to be: Assuming that the Lego company optimizes its production, explain why the relative price of a complex brick relative to a b..
How big should hash table be to ensure a mean hash chain length of less than 1. Assume that hash table size is a power of two.
A profit-maximizing firm in a competitive market is currrently producing 100 units of output. Elucidate firm's profits, marginal cost, and average variable cost respectively.
Assume you are a wheat farmer in North Central Kansas, you have fixed costs per acre of $84, variable cost per bushel is $3.64, and you produce 56 bushels per acre. What is your total variable cost per acre? What is your total cost per acre?
The gap between average total cost (ATC) and average variable cost (AVC) becomes larger when output increases. Marginal cost curve cuts the lowest point of the average cost curve.
When a case is remanded:
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