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A surplus or a deficit
1. What is more beneficial to an economy a surplus or a deficit relative to budget expenditures? Why?
2. If you were chief economic advisor to the President today, what are the three recommendations you would make to him to improve the overall effectiveness of the economy?
Assume that the graph on the next page illustrates the marginal, average variable and average total cost curves of a typical coffee grower-Assume that the current market price at the wholesale level is $5 per pound. How much coffee will this typica..
Illustrate what is the internal rate of return for the college investment that this person faces. Write out the equation used to evaluate the net benefit.
Illustrate why is it difficult for the Fed to decide whether or not to change its interest rate target in the federal funds market.
Discuss how each of the following will affect the marketplace clearing price and quantity in each market. How does the supply and/or demand curves will shift in the following cases.
The macroeconomic environment discussing the effectiveness of the monetary stragies in the US.
Compute the velocity for the two countries in 1985. Explain why do you think the velocity was so much higher in Brazil.
Assume the 3 firms compete for market share over an infinite time horizon. Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0
Suppose they remain in the same place for the next five years, the Bergholts would like to know if it is better to buy or rent the home.
Estimate the linear trend in the data, and use it to forecast gasoline sales in the United States in each quarter of 1990.
In the months of preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.
Assume that the Fed perceives inflation on the horizon and decides to pursue a contractionary monetary policy.
Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.
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