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Q1. Suppose that the government cuts taxes in response to a recessionary gap, but because of legislative delays the tax cut is not put in place for 18 months. Assuming that the government's objective is to stabilize output and inflation, use an AD-AS diagram to illustrate how this policy action might actually prove to be counterproductive.
Q2. Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity and preserving price stability. Please also put references so I can verify and if I need more information use them. Length 2 pages.
Why would you sell these items through retail stores, or would you try direct marketing.
What is the average time that catalog customers must wait before their calls are transferred to the order clerk? What is the average number of callers waiting to place an order?
How does the change of consumer and producer surplus compared to the tax revenue.
What is the elasticity of its demand with respect to advertising? Now suppose the theater increases the number of its ads to 250. Should the theater increase its price following this ad campaign? Explain.
Crew Brew of Wisconsin plans to build a microbrewery on a small stream in that state. After sampling water from the stream, Chris Pierson has found that it is contaminated with pulp and paper waste from a local paper mill.
Calculate elasticity for each variable. On this basis, examine relative impact that each variable has on demand. Illustrate what implications do these results have for industry's marketing and pricing.
Explain the role culture may play in influencing entrepreneurship both at the individual and social level. Define culture in your response.
Suppose the economy is experiencing a recession and high unemployment. What would be the interpretation of how an expansionary monetary policy would address this problem?
depreciation is 5 percent of capital in both countries and country A saves 10 percent of output whereas country B saves 20 percent. If A starts out with a capital-labour ratio of 4 and B starts out with a capital-labour ratio of 2, in long run:
In Illustrate what way do competitive markets have a "natural remedy" for discriminatory hiring practices.
The dropout rate of minority also international students at U.S. colleges also universities are higher than it is for white American students.
For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising.
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