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Many critics however contend that the American Recovery and Reinvestment Act of 2009 were not effective at all except too much budget deficit. But majority economists considered this stimulus package of $862 billion as too small to have a quick recovery. Do you think a second stimulus package is necessary to have a recovery faster in order to get out of this great recession? Hint: As part of your answer, you may include all pros and cons you might think of in supporting your answer.
Constrained optimisation model
Employ the following information on hypothetical short-run production function to answer questions a-d. Compute the marginal and average variable product of each unit of labor input. Hint: plot your Units of labor and Units of Output vertically.
The production engineers at Impact Industries have derived the optimal combinations of labor and capital (the only two inputs used by Impact) for three levels of output: 120, 180, and 240 units of output:
Represent this economy using the AD/AS model and explain the model and what problem will occur in the economy if no fiscal policy is pursued? What fiscal policy tools could be used to combat the problem? ECOM4000
When the CR = 80%, is the market efficient when the market behavior follows the price leadership model?
What is the average fixed cost for the third unit of output and what is the average variable cost for the 5th unit of output?
Identify each as being consistent with risk averse, risk neutral or risk seeking behavior in investment project selection. Explain.
A firm that emerges as the only seller in an industry with economies of scale is a(n): The profit maximizing rule MR = MC applies to: Suppose that the total cost curve for a firm is given by the equation TC = a + bQ, where 'a' and 'b' are positive nu..
Interpret the components of mathematical equations that explain the linear programming problem for each of the following:
Calculate the expected utility of each project and identify the preferred project according to this criterion. (c) Is this individual risk averse, risk neutral, or risk seeking? Why?
Find consumer'sA utility maximizing combination of Qax and Qay. At this point compute the level of utility enjoyed by consumer A.
Assume the economy starts at equilibrium and the mpc=.8. What would be the effect of the $500 increase in taxes (once all the rounds of the mulyiplier process are complete) in relation to equilibrium output?
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