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Question
In this module we learned about a number of real world complications that make monetary and fiscal policy more challenging than simple theory would suggest. Given the state of the economy and the causes of that state-think back to earlier discussions about the current economy-what should be the appropriate mix of fiscal and monetary policy, from a Keynesian perspective? From a neoclassical perspective? Which makes the most sense to you?
Use supply side theory to explain how the economy responds to inflation. What is the signal and incentive that is responsible for the adjustment to inflation?
What is the estimated annual profit for a mine producing 21,346 tons per year (which is at 100% capacity) when zinc sells for $1.00 per pound? There are variable costs of $20 million at 100% capacity and fixed costs of $17 million per year.
What happens to real economic variables? Real impacts (no free lunch)? Roughly half summarization and half application of economic ideas.
How will a successful campaign that decreases the supply of drugs influence the price of drugs and the amount spent on them?
In recent years overnight repurchase agreements (bank repo and reverse repo operations) have been used as a tool of monetary control. How is this tool different
Identify one of the determinants of productivity and provide evidence from the real world about whether this determinant is bolstering long run macroeconomic
Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college?2. Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit or econ..
How does Monetary injection affect the money market and the position of the aggregate demand curve? What is the effect of a closed economy?
Assume consumers expect a recession to begin in the next few months. They might react by trying to save more in case they are laid-off or have to work reduced hours
A manufacturing firm is planning to open a new factory. There are four countries under consideration: USA, Canada, Mexico, and Panama.
The economy starts below its steady state. Suppose the government decides to conduct a one-time policy encouraging saving in time 1.
A monopolist sets price at $10 and sells 100 units. The corresponding marginal revenue is $5 and the marginal cost is $3. What recommendation regarding price and quantity would you give this monopolist? Use a graph to help explain you answer.
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