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Explain the effectiveness of monetary policy and its limitations. Provide an industry example to illustrate your explanation.
The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run aggregate supply curve can never shift.
Suppose U.S. interest rates decline compared to the rest of the world. What would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, euros?
The current payroll tax is 7.65% on both employers and employees (as of 2013). Who do you think bears the economic burden of this payroll tax—firms or workers? Why? Using the tax incidence approach, support your answers using economic principles.
Economists generally dislike the restriction of trade because it:
Critics of traditional welfare programs often cite a disincentive to work as a flaw in the policy. Why would these critics be in favor of the Earned Income Tax Credit (EITC)? And why is the EITC described as a negative income tax?
Quasi-fixed costs include
Read "7 Easy Ways to Use Game Theory to Make Your Life Better," by Duronio. Reflect on your personal life experiences. Discuss a time you have used game theory in your life to earn money or save money. Did you realize you were implementing game theor..
There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator depending on the issue under consideration.
Suppose people only consume bread and cheese. These are consumed in ?xed proportion: two slices of bread and one slice of cheese. Output in each sector is produced using labour only as Yb = AbLb Yc = AcLc and assume total labour in the economy is Lb ..
Conduct a market analysis for your chosen company and develop a report that will be given to the senior management of your chosen company. The objective is to develop a Product Innovation Charter (PIC). A PIC is a written document, prepared to chart ..
What key challenges to nation-states did globalization bring about? First, describe what are nation-states and when they emerged; next, outline some of the key challenges to the nation-states today. Conclude by offering your opinion on whether they w..
The multiplier effect of a change in government purchases. Suppose the government in this economy decides to decrease government purchases by $250 billion. The decrease in government purchases will lead to a decrease in income, generating an initial ..
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