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What is crowding out?
How can an increase in the government budget deficit lead to a change in the trade deficit?
Explain how the government can adjust its behavior in response to a decrease in tax revenue.
How does the debt-to-GDP ratio relate to the real interest rate? Explain.
How might budget deficits affect long-term economic growth?
Explain Ricardian equivalence.
Why are many economists skeptical about the validity of Ricardian equivalence?
Economic growth is driven by household savings being made available for capital investment. Describe the key aspects of the globalization of financial markets since 1980 that have helped drive growth in the world economy.
Visit the Bureau of Labor Statistics website, and click on "Employment Situation Summary" to get the most up to date summary of unemployment in the United States.
In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as Kwik Shops, WaWa, 7-Elevens, Gas ‘N Shops) although their prices are generally much higher than those in the large supermarkets.
Illustrate What would happen if prices were lowered when demand was inelastic
Suppose real GDP is $10,000 billion and the basic expenditure multiplier is two. If two tax changes are made at the same time:
Illustrate what did the USA do like other countries as well after the first oil price shock.
Expected changes in the U.S. real exchange rate vis-a-vis Switzerland and expected rates of inflation in the U.S. and Switzerland.
Explain how the US government managed to accumulate a debt of over 14 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
Joe and Matilda are two farmers, each cultivating some acreage of corn in Wisconsin. Their plots share a border and a reservoir straddles the boundary. Each draws water from the reservoir for their crops. Joe's marginal net benefit for water is g..
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
Assume that the economic news is not good and businesses become pessimistic about the future. How would this change in attitude affect the investment demand curve and the impact on real GDP.
A test classifies applicants as accepted or rejected. On the basis of data on 200 applicants, we test the hypothesis that ad placement success is not related to gender.What hypothesis testing would you use in this situation
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