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The trade deficit appears to be procyclical. Using one of the models outline a possible explanation for the procyclical behavior of the trade deficit. Note: your explanation should include details of the mechanism by which we are able to obtain a procyclical trade deficit
Suppose MPC is 0.7. Government spending increases by $10 billion, and taxes decrease by $5 billion. How would the following items change, and by how much?
If the price elasticity of demand is known to be -0.5, what is the coefficient if the initial price is 10 and quantity demanded is 100?
The problem below asks about the oil price increase from 1973-1980. We have also seen this in 2005 and 2010, although not as dramatic a price increase. During this energy crisis, Congress considered imposing an “excess profits” tax on oil companies. ..
The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps , she receives one dozen bagels free. This offer is an unlimited offer, v..
Write a one page response to the following statement: "U.S. regulators should enforce antitrust laws against the Microsoft Corporation."
Assume an economy without government and without trade. Suppose the Consumption function is given by C=100+0.8Y, whereas I=50. What is the equilibrium level of income in this case? What is the level of saving in equilibrium?
Joe has $16 to spend on Twinkies and Hohos. Twinkies are prices at $1 and Hohos are priced at $2 per pack.
Both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of producing 1 sweater is 3 socks, and Caroline's opportunity cost of producing 1 sweater is 5 socks, then
Economies and dis-economies of scale are demonstrated by the slope of the long-run average cost curve. Discuss the causes of economies and dis-economies of scale and diagram the appropriate areas on a long-run (with appropriate short-run) cost curve.
By upgrading its equipment, a firm can achieve a $15,000 cost savings in the first year and increasing by $2,000 each year for the next 7 years. At an interest rate of 6% per year, compounded monthly, what is the equivalent annual worth of the saving..
What are the implications of BitTorrent for the music industry? For the motion picture industry?
An advantage of the establishment survey over the household survey of the labor market is that the establishment survey
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