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Suppose that the goal of the fiscal authority is to set government spending so to achieve economic efficiency, while the goal of the monetary authority is to achieve stability of the price level over the long run. Assume the economy is initially in equilibrium and that there is a temporary decrease in the relative price of energy. Use diagrams to show that there are many ways in which the fiscal and monetary authority can achieve their separate goals. What could determine what fiscal and monetary policy settings are actually used in this context? Discuss.
Consider the following marginal abatement costs (MC) for a firm using an old abatement technology, where costs are in thousands of dollars. MC=0.5Q a) Assume that the regulatory authority has set an abatement standard (QST) equal to 40 units fo..
By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? How large a tax cut would be needed to achieve the same increase in aggregate demand?
You are given an array with integers between 1 and 10,000. One integer is in the array twice. How can you determine which one?
In 2007, the price of gasoline in Canada was higher than it had been in 2006. Also in 2007, more gasoline was purchased in Canada than had been in 2006. According to the law of demand, higher prices cause lower quantities demanded, not higher.
Assume that you are a medical doctor and that both you and David, your partner in a private medical practice, want to increase your firm's total revenue. You argue that in order to achieve this goal you should lower your consultation fees (price).
Define and then compare the two components of real GDP. Is the cyclical component affected by the trend component? Why or why not?
earson brothers recently reported an ebitda of 16.5 million and net income of 2.8 million.nbspnbspit had 2.0 million of
Suppose that interest parity does not hold exactly, but that the true relationship is R = R* + (Ee - E)/E + r, where r is a term measuring the differential riskiness of domestic versus foreign deposits. Suppose a permanent rise in domestic governm..
Homework - EconS - Illustrate the extended form game of the two-period, two-firm game and describe the second-period pricing for the case in which the first-period product is nondurable and durable.
Explain the influence of any Federal government or state government programs, such as tax credits or tax deductions for energy-saving/efficiency purchases.
Suppose the money supply grows at a constant rate of 4%/year. What is the inflation rate? What's the nominal interest rate? What would be different if money growth were higher or lower (say, 2% or 10%)?
Describe the difference between elastic demand and inelastic demand.
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