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If the Federal Reserve lowers interest rates, what will happen to the government budget deficit? (Hint: What will happen to tax receipts and interest expenses?) If the government wants to offset the effects of the Fed's actions on aggregate demand, what might it do? How will this action affect the deficit?
Suppose that the eye doctor offers senior residents a discounted price for an eye exam. The demand function for senior residents is Qs = 50 - Ps, and the demand function for the general public is Qg = 60 - Pg. The marginal cost for an eye exam is ..
ADVANCED ANALYSIS Assume the following values for Figures 5.4a and Figures 5.4b. Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is ..
Newton exports all their products outside the city and Garfield only sells their products within the city. Newton experiences growth, so it hires 100 more workers, all of whom come to reside in city A. Because of this, Garfield - at the first stag..
Which of the costs for this firm are explicit and which are implicit?
A donut shop has a fixed cost of $124 per day and a variable cost of $0.12 per donut. Find the total daily cost of producing x donuts. How many donuts can be produced for a total daily cost of $250?
Calculate GDP loss, governemnt expenditure needed to eliminate this loss, and the amount of tax cut needed to eliminate this loss if full employment GDP is $400 billion dollars, unemployment rate 8.9%, and the MPC is 0.8.
Why can host countries gain from an inflow of investment by MNCs? What sorts of distortions in host countries may make such an inflow less advantageous? Do host countries need special policies to regulate the operations of MNCs?
By analogy with household indifference curves, a short run isoprofit curve for a firm can be defined as the set of all combinations of wage rate and labor hired that yield a positive profit, so that for the short-run profit function f = P.f(L,K') ..
Indicate both verbally and graphically why such a segmented demand function is likely to exist. What type of industry structure is indicated by this relationship?
In June 2010, the annual GDP growth rate in the United States was 2.4 percent. At this rate of growth, how long does Okun's Law predict it would take for the economy to return to the unemployment rate of November 2007?
the Advisability of which action to take depends on how the market will respond to the new product.If demand is high, then its worthwhile to make the extra investment for special facilities and equipment needed to produce the component internally.
Show that they behave as they would in a perfect-foresight model when anticipated and as they would in the standard AS-AD model when unanticipated.
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