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1. Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model?
2. After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological change and economic growth? What exactly determines the rate of technological progress? Finally, how would you work the variables contained in these models into the Harrod-Domar growth model?
3. Another question lurks behind nearly all discussions of macroeconomic policy: Why should we be so fearful of inflation? Provide your take on the emphasis by most central banks on preventing inflation.
Explain if promoting growth within certain sectors of the American economy is a good reason for the federal government to engage
Illustrate that an increase in government spending can improve consumer welfare.
If an industry has no barriers to entry, no product promotion strategy, a standardized product type, and a very large number of firms operating within it, the industry can be said to have. The long-run average-cost curve
Discuss the following statement: In the real world there is no industry which conforms precisely to the economist’s model of perfect competition. This means that the model is of little practical value’. Illustrate with a diagram and explain the short..
What trade-offs does the Federal Reserve consider when deciding how rapidly or how slowly to increase the U.S. money supply? What are the dangers of increasing the money supply too slowly? Too rapidly? What factors make it difficult to predict the gr..
Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. Compute the elasticity coefficients for price, advertising, income, and cross-price. You are currently paying $.45 for popcorn (including co..
who are well-known to be boring, stuffy types; what could be a better way to reinforce one's credentials as a radical, innovative thinker than to skewer their most beloved doctrine.
discuss the change in the U.S. unemployment rate and inflation rate over the past year based on the Phillips curve concepts.
What are your thoughts about the role of international institutions ( WTO, IMF and World Bank) on providing order and reducing uncertainty in the global economy?
q1. would you advocate monetary restraint or stimulus for todays economy? who would disagree with you?q2. why is the
The recent drop in the price of gasoline and oil has had several effects on the US economy. What pricing model we have considered best represents the market for oil? Defend your answer. Use your model to explain how a moratorium on fracking in the US..
Prices the selling monopoly charges for TV sets in periods 1 and 2.
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