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Using the dynamic augmented Phillip's Curve model (Y/PC/MR), demonstrate the effects of the Following changes. Show both the short-run and long-run effects.
a. An increase in government spending with a compensating increase in the monetary rule.
b. A fall in the monetary rule (a shift down of the MR curve).
Assuming that there are only two goods, and the other good (food) is capital intensive, show the equilibrium points of production and consumption in ALFA, before and after trade.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
How might there be increase in total spending on a child's education in response to providing a fixed level of education?
Global Widgets Corp is a manufacturing company that builds standardized galvanized metal benches for sports arenas and stadiums-Do you think one of these firms would be more likely to benefit from a de-centralized decision making organizational arc..
Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
Application of Nash Equilibrium and Game Theory with examples
What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.
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