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Using your knowledge of production function, discuss how low interest rates may have helped economic growth. Why do you think we still have high unemployment? Why aren’t wages increasing? If you were to advise policy makers on economic policies, what would be your advice? Do you agree with the Fed’s quantitative easing policy?
1. 1) In the classical, full employments, long run, WHAT makes the demand for the economy's output (also called "E") equal to the supply ?
2) Using the long run classical saving and investment graph, how real income Y changes when there is a rise in business confidence?
3) Show (graph) and explain what is meant by the term "crowding out"
Economists assume that consumers attempt to maximize their utility based upon their preferences, income and price of commodities. Do you see any weakness of the above are you aware of any example of irrational behavior by consumers (or yourself)?
Discuss the information asymmetry, the adverse selection problem,and why soft selling is a successful signal.
What is the cost-effective pollution level for each plant if total pollution must equal 100? Suppose the city government knows marginal reduction costs at the two plants. In this case, could the city obtain cost-effective pollution reduction using a ..
A decrease in the investment rate: Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from s to s'. Draw a graph showing how output evolves over time (put Y_t on t..
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,750,000, has annual operating and maintenance costs of $1,000,000, and requires overhauls every 5 years at a cost of $825,000.
Discuss how your expected and disposable future income, after receiving your college degree, may change your saving and investment decisions and transactions in the loanable funds market.
q1. suppose a competitive firm that is profit maximizing pays a wage of 750 per week and the price of its output is 15.
Our discussion board topic listed three potential solutions to the overuse of common resources: command and control, cultural norms, and creating property rights. Imagine you are a policy maker in California with the ability to design an intervention..
Assume that a new project will annually generate revenues of $2,100,000 and cash expenses (including both fixed and variable costs) of $500,000, while increasing depreciation by $250,000 per year. In addition, the firm's tax rate is 37%. Calculate th..
The Fed's actions are subject to executive branch control. Politically controlled banks are better at fighting inflation than are independent central banks. The Federal Reserve is considered to be an independent central bank. The Federal Reserve Syst..
If the stock price rises, the price of a call option on the stock ________ and that of a put option _________ . (Why?)
A news article in the Edmonton Journal on December 2014 stated that, “The province is looking at cutting 70 of the Alberta Law Enforcement Response Team’s 280 positions to save money.” Explain the basic idea behind using a statistical instrument (or ..
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