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(i) Critically analyze the short-term and long-term effects of a large budget deficit and public (national) debt. In your answer, provide an explanation of what the public debt is and how it can be financed. You should also critically evaluate the various measures that are usually recommended for reducing a budget deficit and national debt. (This question may be answered in light of the recent events and economic situation in countries such as Greece, Cyprus, Portugal and Spain.)
(ii) Some people (especially economists) argue in favor of international free trade while others favor protectionism. Critically examine who gains and who loses from free trade and protectionism. Overall do you think that international free trade is a good idea?
100 identical customers, each with relevant demand function Q = 20- P (where Q is the hours per week and P is the per-hour fee). Assuming you priced membership consistent with consumer surplus, if fixed costs = $1,000 and variable costs = $0, how muc..
According to theory, if you lower interest rates, business investments and consumer purchases of large durable goods are supposed to increase. In return, this is to help pull us out of a recession. However, this policy of extraordinarily low inter..
Fairfield began a living wage that paid all landscapers in the city a wage above the current market wage. Vacaville, a neighboring city, did not begin a living wage. Below are employment date for the year before and the year after the living wage ..
Someone say that capitalism is designed to create the rich richer and poor poorer. Enron raised benefits from 96 to 99 for yearly report purposes,
(Aggregate Demand and Supply) Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction
Assume there is an imperfect capital market. Draw a graph to show the optimal years of schooling for an individual with high access to funds but of low ability and an individual with low access to funds but with ..
Estimate the monthly payment if the car is purchased with a $15,000 down-payment and estimate the down-payment required to keep the monthly payment at $550
1. the federal budget deficit has been over 30 percent of gdp since the early 1980s.atruebfalse2. to finance a federal
Display a diagram in (c1,c2) space that indicates the cost combinations for which firm 2 will choose not to compete. Interpret the equation describing the boundary between the regions where firm 2 does and does not compete.
problemsa. compare and contrast the following types of economic evaluation and provide an example of each a cost of
A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is:
What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity?
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