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You now should realize how important it is for economists to try and predict future conditions of the U.S. economy. Economists are also interested in the performance of the economy at a more local level. Discuss how local and national forecasts play an important role in the State and Federal levels.
Macroeconomic equilibrium and the multiplier effect The following graph shows a hypothetical economy in short-run equilibrium at an output level of $400 billion and a price level of 100. Suppose that potential GDP in this economy is $200 billion. Use..
Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by $2 million?
Just breaks even over the year as whole. a Wouldn't the restaurant do better by staying closed out of season. At what cost will it shut down, given that all its fixed costs are sunk.
Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q2 and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firms good is P = 160 - 0.5Q. The firm optimizes by producing the level of output that maximizes ..
Which of the following groups are likely to have the highest tax elasticity of labor supply: a) college students, b) single parents, c) primary earners in two-parent families, d) secondary earners in two-parent families, or e) retired people with ave..
Why is it important that speeches be organized clearly and coherently? How does the oral format of your message impact audience understanding?
Illustrate what type of market structure is auto industry. Has consumer surplus been affected in any way due to changes in auto industry structure and if so, how.
Appalachian Coal Mining believes that it can increase labor productivity and, there-fore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipme..
Mcdonalds spends millions of dollars each year on legal protection of it's brand name, thereby preventing any unathorzed use of it. Explain what information this conveys to you as a customer about the quality of Mcdonalds products
How is it possible for some people to pay negative taxes? Why is it important to distinguish between deficits and debt? Why may a budget surplus be considered undesirable?
What are the various ways in which the Federal Reserve influences the economy? What important tools do they use in influencing the commercial banking system?
q1. suppose that the government cuts taxes in response to a recessionary gap but because of legislative delays the tax
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