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Medicare beneficiaries started to receive outpatient prescription drug benefits beginning in 2006, with the implementation of Medicare Part D. As a result, Medicare’s share of national prescription drug spending increased. Explain how the pharmaceutical companies would respond to this policy change in terms of their R&D activities. What is the economic term used to describe this phenomena?
Assume this economy is closed to trade, and compute consumption, government purchases, national saving, and investment.
Beginning from a steady state in the Solow growth model, explain how an increase in the saving rate will affect the levels and growth rates of capital and output per worker. (Note: discuss both the short-run and long-run impacts).
In the classical model if there is a decrease in capital stock, what are the effects on labor demand, real wages, and output? (Increase or decrease) What are the effects if population decreases?
You have studied the judicial branch of government, with emphasis on the Supreme Court, and the rulings they have made which have had wide-ranging effects on everyone in America. Describe the background of each of the two cases – the reason a case wa..
Suppose that the city of Cool currently levies a property tax for public safety at a rate of one percent of taxable value on a base of $10 million of taxable property. If the price elasticity of demand for public safety in Cool is -0.2, calculate and..
question 1nbspbusiness economics is a useful toolbox for understanding the business environment and making better
Assume the U.S. is a small open economy and has balanced trade. Suppose Congress is worried about the U.S. economy entering another recession and as a result increases infrastructure spending. Using the LF model, illustrate and describe the effect of..
Theoretically, if there is free trade, exports will tend to equal imports through adjustments in the currency exchange rates. Demonstrate this adjustment process graphically and verbally.
You are offered a choice between $5000 today or $10,000 in 5 years. If you choose the $10,000 in 5 years, this implies that
Illustrate what would happen to total employment, the size of the labor force, and the unemployment rate? Show the results graphically.
Assume that the market for salad dressing is in equilibrium. What will happen to the price of lettuce rises.
The estimated regression equation is:
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