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Some economists believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner? Why or why not?
Think about a company that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm.
The level of investment down because of a lack of confidence in the economy. Interest rates are kept artificially low by the Federal Reserve for several years.
Suppose that you hire workers to address and stamp envelopes. Each worker earns $5 per hour and produces 50 addressed, stamped envelopes per hour. You have unlimited free office space and can therefore add as many workers as you want with no fall-..
Describe the optimal method for procuring a modest number of standardized inputs that are sold by many firms in the marketplace.
Identify the marketplace structure of the electronics retail sales industry. Discuss possibility of short-run and long-run profits in that industry.
How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
A Company is planning whether to increase into a new territory. It has estimated the following according to possible changes in the economy. Determine their expected growth and risk measure of the growth.
The average cost per person for crashes in the Tampa, Florida, area was reported to be $1599. Suppose this average cost was based on a sample of 39 persons who had been involved in car crashes and that the population standard deviation is ? = $700..
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
Illustrate this strategic interaction using a game in normal form and has WallMart a strictly dominant strategy? Has it a strictly dominated strategy? Clearly explain.
How much have prices risen between 2000 and 2010? Compare the answers given by the Laspeyres and Passche price indexes.
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