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Q1. You buy a season pass to the philharmonic symphony hall. You paid $250 for five performances. What is the money cost to you of sleeping through one of the performances? Explain.
Q2. Suppose a country increases government purchases by $100 billion. Suppose the multiplier is 1.5 and the economy's real GDP is $5,000 billion. Which direction does aggregate demand curve shifts and how much?
Q3. The type of manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job, GDP would have been higher, even though the amount of out-put would have been identical. Why is this? Does this make sense?
Give an example of a government created monopoly. Is creating this monopoly necessarily bad public policy?
Discuss the pros and cons of annuities when compared with other financial instruments and whether they provide a better investment opportunity for some people.
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reduced.
Calculate whole expected convenience from each restaurant option and also compare?
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
Compare the effects of these two policies in terms of their implications for the current account.
What are price indexes designed to measure. Outline how they are construed. When GDP and other and other income figures are compared across time periods.
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
Describe the international monetary system known as the Bretton Woods system, or the gold exchange standard that existed from the mid 1940s to the early 1970s.
Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
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