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You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q = 150,000 - 1.5P, what price should you charge in order to maximize revenues from sales of the Highlander?
Describe the recession we have seen a significant increase in unemployment. Use the model of supply and demand to illustrate what has happened.
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
In 1996 Congress increased minimum wage from $4.25 to $5.15 every hour. Some people advise that a government subsidy could help employers finance higher wage.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
What is the argument against attempting to balance the Federal Government budget rapidly at the present time via either deep cuts in Federal Government spending or sharp increases in federal income tax rates?
Suppose that American households change their tastes such that they want to save more at every level of income.
Bush proposed for government expenditures in the case of a recessionary gap? What is the effect of his policies on the federal government budget?
Assume the construction of the $360M stadium is to be financed entirely with debt to be repaid over twenty years. The repayment burden is negilible in short run.
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.
Article: Why you should worry about big oil. The oil industry is in the business of extracting and selling oil. It is the goal of the oil companies to do this as efficiently as possible.
Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.
Illustrate which national financial policy programs are best for addressing the problems in the U.S. economy
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