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Utility Theory seeks to explain how you make decisions in order to achieve the greatest total utility (satisfaction or happiness) with a given amount of resources (time or money). Below are two, quite different, articles. Read them both and:
Relate the content of both to Utility Theory as presented in the text.
Engage the content: agree? disagree? Is there anything in the articles that can help you increase your utility?
Determine which of the following theories of expectations holds that individuals usa all information available in forming expectations?
Suppose that American households change their tastes such that they want to save more at every level of income.
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
Would an attempt to decrease the budget deficit not increase it. Does today's deficit not create tomorrow's surplus.
Machine A has been completely overhauled for $9000 and is expected to last another 12 years. The $9000 was treated as an expense for tax purposes last year. Machine A can be sold now for $30,000 net after selling expenses
The cost of digital cameras calls. What happens to the demand for memory card. What happens to the demand for digital cameras.
You must think an idea to be developed as a business. Please, write a short paragraph explaining what your idea is all about.
What is the major problems caused by a large national debt.It is does not allow small investments by private individuals or else.
If the real interest rate is less than the growth rate of output, explain why governments can run a deficit yet not have to worry about the size of their debt.
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
Describe the lower price alter the marginal utility you originally placed on the item.
1. using the traditional keynesian model explain how contractionary monetary policy would affect equilibrium aggregate
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