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1. Describe the role played by expansion in the government sector (funded by budget deficit and public borrowing) in changing prevailing levels of unemployment and GDP. Your exposition should be based on sound economic principles and should have appropriate graphs (like aggregate demand and aggregate supply).
2. Describe how sustained budget deficits can lead to interest rate increases and how that might lead to crowding out effect. Do you think that an expansion in the government sector (funded by budget deficit and public borrowing) is good for the savers? Carefully elaborate your argument and provide appropriate graphs wherever you can.
3. Describe how an increase in the interest rate may affect the savers, firms, employment numbers and GDP. Given the current scenario, would you advocate a hike in the interest rate by the Fed? Carefully articulate your argument and assume that you are advising the Chairperson of Federal Reserve. Be very careful as your advice may have significant impact on the US economy.
bridget has a limited income and consumes only wine and cheese her current consumption choice is four bottles of wine
If we believe that the laws of supply and demand always hold, explainc why is it that the 'popular' gifts for the holidays always sell out early?
Calculate the profit each firm earns in equilibrium.You are a manager for Herman Miller—a major manufacturer of office furniture. You recently hired an economist to work with engineering and operations experts
Continue to assume that your firm will survive for only one production period.
As Rob consumes more dates over the course of a day, it is likely that his marginal utility from date consumption will rise." Is the previous statement likely correct or incorrect?
We write the percentage markup of price over marginal cost as (P - MC)/P. For a profit-maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?
Write a proposal to H. M. Luce Foundation for the costs of the proposed hotline - What are the qualifications of those involved?
What type of externalities arise from driving automobiles fueled by gasoline and what is your view on whether the United States should raise the gas tax to the European level and why?
The concise definition of economics is the study of choice under scarcity. Let's use this concept to analyze a recent decision that you made. Should we only evaluate monetary costs, or are there other non-monetary costs we must consider
Two pollution sources are located in the same town, immediately next to each other. For every quantity of abatement, marginal costs of abatement for the first source are higher than marginal costs of abatement for the second source.
As a consequence of a 1976 court case that Ralph Nader won against an airline that had "bumped" him, the federal government adopted a rule requiring airlines to compensate people who were denied boarding despite holding a confirmed reservation. As a ..
In the competitive market at a price of $50 and cost function of C=50+5Q2 find out the maximum profit? Show how the solution was reached.
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