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How do changes in disposable income affect government purchases and the government purchase function? How do changes in net taxes affect the consumption function?
Clearly define “crowding out” and economic effects. Graphically illustrate the level of crowding out in an IS-LM model. Explain in detail how the interest elasticity of investment affects the level of crowding out. Be sure to explain why this is the ..
Give two examples of externalities connected with consumption and saving that can be used in arguing for policies aimed at increasing U.S. personal saving. Explain why they can be used that way. Explain what a traditional I.R.A. is. Explain how it in..
Find a current article about one or more of the macro variables for a nation of your choosing, such as GDP, employment, inflation, or international trade.
The term consumer sovereignty refers to...
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in the market will ultimately try this brand. Calculate the long-run market share that the ..
Stigler argued that the variation in fees increases as buyer information decreases. Suppose you observe that each seller in a market is charging the identical price. What potentially conflicting inferences can you draw?
Output gaps are caused by inflationary pressures generated by the unintended side effects of government policy. A low level of aggregate spending can cause real GDP to fall below potential output. When spending is high, output may rise above potentia..
What probability of discovery would make the driller indifferent between drilling and not drilling and what is the expected value of perfect information on reserves?
Describe the cost function and explain the difference between a short-run and a long-run cost function. Describe the elements of a cost schedule which can be derived total, fixed, and variable costs. Compare and contrast the short-run cost function a..
The circular flow of income model shows that
If the average adult produces $90,000 of output per year, how much output is lost as a result of adult deaths from secondhand smoke, according to the News on page 74?
Suppose a fish population experiences logistic growth with growth rate r per year and environmental carrying capacity C. The population is harvested at a rate of h per year. What are the equilibrium for this model? Are they stable or unstable? What i..
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