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Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions? Get started early and work with your class members to solve this problem.
Suppose that the government of Tonga decided to impose or place a price floor on all imported chicken products. Elucidate what is the advantage and disadvantage of this policy.
Suppose firms compete in quantities. How much does each firm sell in Cournot equilibrium.
For each of the following, use an ADIIA graph to show the short-run effects on output and inflation. Assume the economy starts in long-run equilibrium.
q1. at daves current consumption bundle involving positive units in both hot dogs and sodas his marginal utility for
Do economic events affect presidential elections. to test this so -called political business cycle theory. Elucidate what is the expected sign of X.
q.the warren amp smith company manufacturers commercial zippers of two kinds kind x and kind y. its production
I am also going to invest $ 100000 of my saings which were earning an average annual rate of 6 % what is my opportunity cost of opening a restaurant?
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
A house can be purchased for $155,000, and you have $25,000 cash for a down payment. You are considering the following two financing options: What is the effective interest rate of the combined mortgage? Compute the monthly payments for each option o..
Elucidate what happened to Ikonomia's net foreign assets during 2007. Did it acquire or lose foreign assets during the year.
Show how the IS curve and the LM curve can be shifted to get an increase in output without a change in interest rates. What kind of mix of monetary and fiscal policy is needed to do this? Will a reduction in interest rates, while holding output const..
Suppose you read in an industry publication that the Rothschild index for the petroleum industry is 0.88. Based on past experience, you know that the price elasticity of demand for the petroleum products sold by your firm is ?1.5.
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