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Budget deficit or surplus vary over the business cycle
One alternative to balancing the budget annually or cyclically is to produce a government budget that would be balanced if the economy were at potential output. Given the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle?
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.
Illustrate what are the major differences among an open and closed economy
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Utilizing an AD-AS diagram suppose that the economy is initially at potential output
Illustrate what trends do you see in the data sets. Support your assertions of trends with statistical evidence.
Elucidate what does the US government hope to achieve through the use of its antitrust policy.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Consider the Figure below that represents a perfectly competitive firm
Suppose the present market conditions of Microsoft Corporation.
Explain why is the depreciation of capital good a cost of society
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
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