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New classical economists differ from traditional classical economists because new classical economists
Believe people's rational expectations will lead them to offset government policy.
Focus on budget restraint and the use of monetary policy when the economy overheats.
Believe tax cuts and government spending should be used to increase demand and output.
Believe that economic failures are inherent in a capitalist economy.
Consider a palletizer and a bottling plant that has a first cost of $150,000. It has operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8% per year. Wh..
Is the law of diminishing returns impacted as a result of firms not hiring the best workers that may be available for positions within the firm or organization? Explain your answer.
Molson’s Beer is produced in Canada and sold in many countries. In the province of Ontario a six-pack of Molson’s beer sold for $8.00 Canadian. Across the border in Buffalo, NY a six-pack of the same beer was for sale for $6.00 US. How much would it ..
Cash versus Stock Payment [LO3] Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total aftertax annual cash flows by $2 million indefinitely. What is the cost..
q. suppose people in our overlapping generations model have the opportunity either to hold at money with complete
Assume which one company acquires all the suppliers in the industry and thereby creates a monopoly.
Explain what happens to the elasticity of demand for labor in a given industry after which of the following events: A new manufacturing technique makes capital easier to substitute for labor. There is an increase in the number of substitutes for the ..
A cost of using Fed discount operations to prevent bank panics would be ______. Economics of scale explains the existence of financial intermediaries because of ______. Benefits of using a nominal anchor for the conduct of monetary policy includes __..
Discuss the Counter-Reformation. How did the Catholic Church respond to the Reformation in both positive and negative ways? Give some examples of the measures it took. Were they successful?
For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2. Producer surplus, which equals profits, plus the net effects of any taxes, subsidies, or side-payments agreed to under t..
Illustrate what price should the owners of blue skies set for engines in order to avoid this problem and maximize overall profits.
Given the following regression equation with t-statistics in parentheses: Salary = 566,400 + 71,928 Goals + 20,403 Assists + 98,430 All-Star (3.45) (2.96) (3.5) (1.30)R2 = 0.95Salary = NHL Salary in $Goals = Number of career goals Assists = Number of..
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