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Does an active fiscal policy help or hinder long run growth
Does an active fiscal policy help or hinder long run growth in the economy? The textbook presents arguments that can be used to support both sides in this debate. How do they compare? List reasons why an active fiscal policy helps the long run growth of the economy. List reasons why an active fiscal policy hinders the long run growth of the economy. Should the US use fiscal policy to encourage long run growth of the economy? Why?
Suppose that American households change their tastes such that they want to save more at every level of income.
Suppose demand for the firms watches falls permanently to P = 20 - Q/20,000. In view of this fall in demand, what output should the firm produce in the short run? In the long run? Explain.
What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
Create a graph that shows Price on the Y-axis and Q demanded and Q Demanded and Q supplied on the X-axis.
Explain all your answers below clearly, including brief definitions of each term.
Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced.
Find out average fixed costs when the firm produces 50 widgets per day. Find out average total and variable costs for producing 49 widgets.
Problem on standard deviation
Dr Leona Williams a well know Plastic Surgeon, has reputation for being one of best surgeons for reconstructive nose surgery. Dr Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to b..
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
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