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1. How do government finance budget deficits?
2. Government debts are not a problem for countries. Discuss?
3. Fiscal stimulus is an effective policy to counter a recession when the marginal propensity to import is large. Explain?
Using the sticky-price model, the higher the average rate of inflation, the more frequently firms must adjust their prices, which implies that a high rate of inflation: Starting from long-run equilibrium in the dynamic model of aggregate demand and a..
Calculate the coefficient of price elasticity (midpoints approach) for Goldsboro's supply.
When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present. Some unemployment will be present even when a dynamic labor market is operating efficiently. When full employment is present, the rate of unemployment..
Which of the following payment terms should a professional athlete prefer in a “ten million dollar” five-year contract if the athlete wants to obtain the greatest present value of income?
q.assume firm ys production function is given by the following cobb douglas equation q 0.5 x l0.6 x k0.5 where l
The behavioral economist Robert Frank speaks of the bounded nature of rationality in his 2008 interview (Challenge 2008) and discusses the axiom of the independence of irrelevant alternatives in rational choice theory.
Recently, the U.S. Supreme Court ruled that cities could have voucher programs that give money directly to parents, and the parents can then choose between competing schools: public and private. The idea for promoting such a ruling was to create comp..
With units-of-production depreciation, what is the allowable depreciation rate per hour? What is the book value after 4000 hours of operation?
Industry supply and demand are given by QD = 1000 - 2P and QS = 3P.
Inventory accounting can often be used for unethical or fraudulent behavior. Discuss the accounting principles and practices as they relate to inventory
Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross national product (GNP) = 200 Current accoimt balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from..
Suppose shoe manufacturers can substitute between labor (L) and capital (K) in producing shoes. Further suppose that due to global competition the price of capital equipment used to produce shoes has decreased significantly. Using an isocost-isoquant..
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