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1. Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced-budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit?
2. Explain why stabilization policy may be difficult to carry out. How is it possible that stabilization policies can actually be destabilizing?
A random variable X is defined to be the larger of the two values when two dice are thrown, or the value if the values are the same. Find the probability distribution for X.
What is your advice to return to the equilibrium situation?
two individuals chip and holly are stranded on an island. the island has plenty of vegetation. chip and holly can spend
Are there substantial differences between the finance goals of investor-owned and not-for-profit corporations? Explain.
Be sure to indicate the direction of change in Real GDP, the Price Level and the Unemployment Rate. Label all curves and axis for full credit.
Formulate the dynamic optimization problem of a representative household, and show that any interior solution to this problem violates the transversality condition. Interpret this result.
Kate is one of 60 price-taking street artist. she and other street artist each produce their artwork with total costs given by SRTC = 3q^2 where q is the armound produced by each artist. the demand for such artwork is given by Q = 600 - 10P.
the parents of a young child decide to make equal annual payments into a savingsaccount with the first payment being
I want to deposit $10,000 now and $15,000 at the end of five years in a bank that pays 15% interest compounded semiannually. I want to withdraw an amount every year for the first five years and to withdraw $500 more for the following four years.
Show that expenditure on agricultural goods increases at the same rate as aggregate output.
Which two characteristics define a public good? Provide an example of a public good that was not discussed in the chapter.
Many MBAs who ventured into the "dot.com" world of the late 1990s found themselves unemployed by 2001 as many firms in that industry ceased to exist. However, during their tenure with these companies, these managers gained valuable skills in how t..
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