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Describe a real or hypothetical situation that requires someone to make a policy decision. Then, select one of the three approaches to forecasting to apply: extrapolative, theoretical, or judgmental. Provide at least two reasons for your selection of the forecasting approach.
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
Since the US gov't was running a budget deficit at the time, assume that the war was financed by gov't borrowing. How does the equilibrium interest rate and private investment change in response to gov't expenditure on the war?
Markets are a very good way to organize economic activity in our economy. Why do we classify price floors and ceilings as a type of market failure and why does the government need to get involved in these types of markets?
Describe the risks associated with such a project. Describe an approach you would take to prepare a fixed-price and schedule estimate, and describe how your approach mitigates the risks you identified in question 1.
Illustrate what happens if the government is trying to stimulate the economy with their spending, but this leads to a greater output than projected.
Comprise a reconciliation of the differences among the forecasts for GDP and a rationalization for which forecast
Price Discrimination (PD) occurs "when a firm charges different prices to different customers for the same good". Explain under what conditions PD is possible and profitable? How Price Discrimination impacts the consumer welfare? {Use neat and cle..
The days of picking up a phone and calling to order a product is almost of heard of today. Today most ordering is done on line using new technology known as Electronic Data Interchange (EDI). Big distribution centers are using this technology to fil..
Suppose that a market basket of two goods is changed by adding more to one of the goods and subtracting one unit from the other.
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
question 1 most of the firms spend considerable amounts of money on advertisement. explain advertising elasticity of
Discuss how monetary policy works to help achieve economic goals and discuss how national economies interact with each other to achieve their individual economic goals. (This is a question about foreign trade
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