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Is a $15 an hour minimum wage good for the U.S. macro-economy? Explain why. Is it bad for the U.S. economy? Explain why.
Note: fifteen dollars an hour would make the minimum wage today roughly equal in buying power to the prevailing minimum wage of 1970, even though the GDP in 1970 was considerably smaller than today.
Monetarists disapprove of how the Federal Reserve conducts monetary policy. What is it about the Fed's policy process that bothers them? Discuss their criticisms.
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by and market demand is given by MC(q) = q + ..
Suppose in the Cournot model that the firms have different production costs. Let c1 and c2 be the costs of production per unit for firms 1 and 2 respectively, where both c1 and c2 are assumed less than 1/2. Find the Cournot equilibrium.
Direct investment inflows by foreigners into the United States have been sizable in recent years. How might this net inward movement of capital affect the level and pattern of U.S. trade according to the Heckscher-Ohlin model? The level of world outp..
Each of the following situations involves moral hazard. In each case, identify the principal and the agent and explain why there is asymmetric information. How does the action described reduce the problem of moral hazard?
When sellers have more information about hidden characteristics of a good than buyers have, more low-quality units are likely to be sold than high-quality units.
The long-run average-total-cost curve shows. Total fixed costs generally decline as output is increased. Average total costs tend to be U-shaped. As output increases, average variable costs converge to average total costs.
q1. since the gdp is a total market value of final goods and services produced within a country over time. why is this
Explain how GDP is measured in your country - analyse and explain who would benefit directly and who would lose directly from such restrictions.
Describe how a change in the exchange rate affected your firm. Explain what happened to your price and quantity. How can you profit from future shifts in the exchange rate ? How can you predict future changes in the exchange rate?
The capital asset pricing model (CAPM) is used
Why tax multiplier is smaller than the multiplier for the same amount of government spending? Please explain with the following data: $1 million tax cuts, $1 million increase in government spending, MPC=0.75.
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