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1. Describe the role played by expansion in the government sector (funded by budget deficit and public borrowing) in changing prevailing levels of unemployment and GDP. Your exposition should be based on sound economic principles and should have appropriate graphs (like aggregate demand and aggregate supply).
2. Describe how sustained budget deficits can lead to interest rate increases and how that might lead to crowding out effect. Do you think that an expansion in the government sector (funded by budget deficit and public borrowing) is good for the savers? Carefully elaborate your argument and provide appropriate graphs wherever you can.
3. Describe how an increase in the interest rate may affect the savers, firms, employment numbers and GDP. Given the current scenario, would you advocate a hike in the interest rate by the Fed? Carefully articulate your argument and assume that you are advising the Chairperson of Federal Reserve. Be very careful as your advice may have significant impact on the US economy.
People are more likely to clean up waste in their homes than at a community park because people expect the community park to be dirty.
The sum of coefficient are 0 using STATA program?
How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns and the theory demonstrates how trade affects the distribution of income within trading partners. Explain.
assume that a firm in a perfectly competitive industry has the following total cost scheduleoutput
Why is the supply curve drawn as a vertical straight line
Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. how might the government help to eliminate this inefficiency.
Third national bank had a reserve of $20000 and checkable deposits of $200000. The reserve ratio is 10%. Households deposits $5000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank now..
Explain the differences between external costs, private costs, and social costs and how the presence of external costs leads to market failure.
Calculate the gain or loss for all of the 3 depreciation methods if the hospital sells the x-ray machine at the end of the second year for $65,000. (Show your 3 answers and calculations below.)
when the price of sugar was low consumers in the united states spent a total of 1 billion annually on its consumption.
use a principle or principles discussed in the course to explain some pattern of events or behaviour that you
Recently, there have been several consolidations in the economy, the biotech industry being one. With the creation of fewer "Biotech giants worldwide", will this lead to stronger monopoly power, thus potentially contributing to rising healthcare c..
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