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One problem that Japan faced in fighting deflation is what Keynesian economists refer to a "Liquidity trap" where monetary policy is ineffective. On the graph of the market for money for Japan to the right, show what would happen if the Bank of Japan eased monetary policy to fight the recession and deflation. Label and show what would happen to the quantity of money and the interest rate in Japan on the graph.
Imagine that it is the year 2199. Technology has progressed at an incredible pace. The latest discovery is the plutonium engine, which is capable of converting plutonium, a by-product of nuclear fission, Describe the economic outcome of this single-p..
It is argued that Africa should endorse hunting, charging big fees for permits to kill animals
Suppose that quarterly consumption in dollars (CONS) is a linear function of the amount of disposable income in dollars (YDISP) with a two-order lag: What is the effect of a permanent increase in YDISP of 1000 on the long-run average of CONS?
Assume that the payoff to a goblin is if he is made into a house elf and that it equals the number of galleons if he is not. Using the solution concept of subgame perfect Nash equilibrium, what happens?
The notion of rent controls can be somewhat controversial. What is the economic rationale for a city to enact rent controls? What are a few unintended consequences of rent controls in large cities? Be specific.
Again, thinking in terms of marginal propensity to consume, under what circumstances would your tax proposal increase total consumption spending? What other policies could be enacted to increase total consumption spending?
With marketers, increasingly adopting more and more refined market segmentation schemes fueled by the Internet and other customization efforts—some critics claim that mass marketing is dead. Others counter that there will always be room for large bra..
Calculate the amounts of outputs, Q1 and Q2 that the monopolist should produce and the prices that it should charge if it wants to maximize total profit. Calculate the amount of total profit.
LCD TVs and ?Blu-ray players are complements in consumption. Suppose the price of LCD TVs falls. How will this affect the market for? Blu-ray players?
The output that maximizes profit is obtained where : Perfect competition is characterized by: If price is greater than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:
If you wanted to measure the amount of income households had available after paying personal taxes, which of the following would you use?
Suppose tariffs of $2 were imposed. Calculate the effect on producer surplus, consumer surplus, government revenue and the deadweight loss.
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