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How does a current budget deficit affect futureworkers? How could a policy by the current government to reduce thenational debt hurt these future workers?
Classical macroeconomics theory concludes that ultimately Fiscal policy generates only quantity effects, erratic investment causes long business cycles or else.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
Bada Bing, Limited. supplies standard 256 MB RAM chips to the US computer and electronics industry. Like output of its competitors, Bada Bings Chips must meet strict size, shape, and speed specifications.
Define economies and diseconomies of scale, explain how each is possible, and relate each to shapes of long-run average total cost curves.
Why does a temporary increase in the real wage increases the amount of labor supplied, but a permanent increase may decrease the quantity supplied. Condiotions of this too happen too.
(a) What is mean by that Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly. (b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
Explain how can rational thinking the above behaviors. How do your thoughts impact, if at all, your opinion of the theory.
Explain all your answers below clearly, including brief definitions of each term.
Illustrate what economic forces and mechanisms work to maintain trade equilibrium. How does the balance of trade impact business decisions.
Assume the forex market equilibrium is given by i = ((i/E) - 1) + .1, where the two foreign return terms on the right are expected depreciation and the foreign interest rate. What is expected exchange rate? Solve for the IS curve: obtain an expres..
An oil cartel effectively increases the price of oil by 100 percent leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equlibrium at the same level of output and prices at the time of the shock.
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