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Question: The little-known western/central European nation of Hungadunga is ruled by three men: Hungadunga the Unready, Hungadunga the Unsteady, and Hungadunga the Younger. Their economy is in the midst of a recession and you have been called in to advise and counsel them on how to revive the economy. You know these Hungadinga facts: 1) It's economy is anemic- growing at a sluggish 0.1% per year; 2) It has a stable and educated population; 3) geographically, its mountains rival the Alps; 4) the country enjoys the four usual seasons; 5) there is some arable land but not enough to farm to feed the population.
List three fiscal and/or monetary policies would you suggest to help Hungadunga? List two consequences/externalities which would result from each of your suggestions. Think short term and long term (say, at least five years from now). You may not be able to devise solutions, just suggestions.
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A firm’s demand function is as follows: Qx = 400 - 5Px + Py - 2Pz + 2I. Assume initial values of Px = 50, Py = 20, Pz = 20, I = 50. Determine the quantity of X that will be sold assuming the initial values. Develop the corresponding Total Revenue and..
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