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Each year since winning control of the House of Representatives in the 2010 election, Tea Party Republicans have argued that we need to immediately initiate sharp reductions in government spending and entitlement programs and rapidly move towards a balanced budget. Many Democrats, while arguing that tax rate increases on high income earners need to be part of the any deficit reduction program, have agreed that we need to initiate budget deficit reduction now.
A. What is the argument against attempting to balance the Federal Government budget rapidly at the present time via either deep cut in Federal Government spending or sharp increases in federal income tax rates?
B. Does this argument imply that budget deficits don’t matter in the long run? If not, why might the impact of large deficits predicted in the long run under current tax and spending programs be different than the impact today?
A standard objection to General Equilibrium models is that their long run predictions are irrelevant because in the long run we would all be dead. Evaluate this expression in the context of fiscal and monetary policies to relieve economic stress.
Explain why product differentiation leads to differences between monopolistic competition and perfect competition.
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for her view that inflation is not a major problem for an economy.
How many times would Mexico's 2005 real GDP per person have to double to reach the United States' 2005 real GDP per person.
q1. the price of a laptop increases by 20 and there is a 40 drop in the quantity demanded. the price of a pack of
Elucidate why a system of marketable polution permits leads to less costly pollution abatement and a higher concentration of polluted areas tha a command - and control system.
According to Friedman and Schwartz, what was the consequence for the U.S. money supply of the Federal Reserves crime of commission?
If the expected future exchange rate rises, the currency's
q.jake takes 40 minutes to fry a chicken and 2 minutes to toast a slice of bread. his brother elwood takes 20 minutes
Discuss the types of barriers to entry, and explain whether each type is likely to provide long-term monopoly power. What are the allocative and distributive differences between monopoly and perfect competition? What causes these differences?
World Trade Center and Pentagon affected short and/or long-term productivity in United States. Elucidate your response and show any movements in PPF.
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
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