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People's expectations about the future state of the economy (in other words, their general pessimism or optimism about the future) are very important in determining their current economic behavior. Given that, I've had students in the past suggest that, instead of giving people reliable information about the economy, it would be better for the government to lie and tell people that everything is fine, even when it really isn't. Discuss the merits of such an approach. Would the government be able to prevent a recession by lying about the state of the economy?
What is the golden rule savings rate? How does it depend on the depreciation rate and the marginal product of captial? If the current savings rate is below the golden rule savings rate, should the economy increase the savings rate? Why?
You find that the car requires repairs of 1,200 dollars in order to get it to run. Once it is repaired, it will definitely not break down again. Assuming that the car is worth 3,500 dollars after repairs, should you get it fixed.
Your local newspaper charges $1.50 per line for your ad about a garage sale this Saturday. The reason for the garage sale is that you are cleaning out your house to put it up for sale. When you place the ad with the same newspaper to sell your home, ..
Under what circumstances should employees be ineligible for public or private disability and life benefits? Discuss the rationale for your answer. Are the expenses associated with providing public and private programs serving the best interests of so..
What steps can Congress and state legislatures take to alleviate a serious national shortage of skilled providers. Research suggests medical errors have been linked to inadequate staffing.
Poetry allows the writer to express big ideas in small 'word packages.' Using free or formal verse, create a collection of 5 poems to be considered for your Course Portfolio. Our topic: Miracle Moments Miracle moments are all around us every moment o..
Economists believe that markets generally are “efficient.” What does this mean and why do they believe it? Use Consumer Surplus, Producer Surplus, and Total Consumer Surplus to fully answer this question.
How an economist answers the question, does economic power exist, is one main difference between the heterodox and conventional approaches. Explain both positions by explaining their supposed general theories. (Note, this is asking you to explain, ac..
"War is the collective pursuit of a dangerous activity. But the collective pursuit occurs person by person. Why do individuals participate in war, whether voluntary or conscripted? In battle, what makes the fighting unit stay together as a collective..
Crusty Cakes sells donuts in Eastown and Westown. Its total costs are given by TC = 10(Qe+Qw). The demand in each neighbourhood is given by Qe = 100 - 2Pe and Qw = 100 - Pw. If Crusty price discriminates between the two neighbourhoods, how much are i..
33 % of monetary base is held outside ?nancial institutions. Where do you think this portion of the monetary base is held exactly? Under what conditions might it return to the banking system?
A piece of research equipment is expected to require an investment of $18,000, with $6,000 committed now and next year $7000 while the remaining $6K will be pay out at the end of year 2. Annual operating costs for the system are expected to start in ..
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