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Why does a tax on a product that has a negative externality help get the market closer to the social optimum?How does the tax change the behavior of the consumer or producer?
Assume an economy is going through a Recession what type of Monetary Policy requires to be implemented through the Federal Reserve?
Potatoes cost Janice $1.10 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14
Suppose the French suddenly develop a strong taste for California wines. Answer the Following with words and a Diagram: a. What happens to the demand for dollars in the market for foreign-currency exchange
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
Find all pure-strategy Nash equilibria in the game below. List each Nash equilibrium in (Player 1’s Strategy, Player 2’s Strategy) form.
Assume that the Federal Reserve acts to low interest values. How this will affect the United States economy?
Many economists have attempted to create a set of social accounts that would come closer to measuring the economic well-being of the society than does GDP. What modifications of the current approach would you recommend to them
How does the Federal Reserve increase or decrease the money supply and what might cause the Fed to change the supply?
A certain country has a very centralized collective bargaining, under which wage bargains are applied nationally. This country is thinking about adopting a bargaining structure that is more decentralized so that wage bargains will be made.
Illustrate what are the different types of exchange rate, their advantages and disadvantages.
Suppose that it is known that labor receives 25% of national income. With a Cobb-Douglas production function and an initial level of real GDP of $10,000, what happens to real GDP if both capital and labor double?
Discuss the difference among inflationary gap also deflationary gap.
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