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Neoclassical economists believed that market economies were self-adjusting and concluded that prolonged recessions were an impossibility. What is the basis of this argument?
Given the distribution above what is total social welfare. What distribution of income would maximize the Social welfare function?
For each market (a. & b.) would it be to the producer's advantage (i.e. would TR increase) to raise or lower price? If P0 = $10.00 and Q0 = 100 units, justify your answers by applying the interpretations of those price-elasticities of demand on t..
Different theoretical views on national debt,• Long-run costs of high national debt
Using the liquidity preference framework, show why interest rates are procyclical (rising when the economy is expanding and falling during recessions). A graph is required for this part of the question.
Assume Ireland can produce 4 units of good X or 2 units of good Y. France can produce 3 units of good X or 9 units of good Y. What would be the terms of trade between Ireland and France for 1 unit of good X?
Illustrate what are the two main challenges of the international trading system? How have these concerns been negotiated among trading partners.
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit.The firm's total costs are C ( Q) = 40 + 8Q +2Q2.
Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the followin..
World Class Manufacturing Operations has enjoyed rapid increase in sales & high operating profits. But now the firm faces potentially fierce competition from a large number of competitors as WCMO's important basic patents expire during the coming yea..
Explain what is meant by the multiplier and explain what variable determines its size. Prove through use of algebra that in a two sector economy saving must be equal to planned investment at the equilibrium level of output.
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
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