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Given the ever-increasing age of the population and advance of medical technology, why would anyone expect the growth of medical costs to slow down in the future?
Describe a situation that would call for applying one or more of any (dynamic economic model/legit model/random walk model/spurious regression/co integrated time series/tests of stationary). Explain your rationale for applying the model you chose.
Classical Investment theory believes that’s investment depends on real GDP and real investment rate. You are estimating an investment model based on theory as: I= B0+B1+B2r+U Where I is investments, Y is real GDP, r is the interest rate, and U is sto..
In the theory of consumer behavior, certain axioms about the nature of preferences imply that indifference curves cannot cross. Which axioms imply this? Explain your answer using a diagram and using words.
?What would happen to the money supply initially if the public deposited another $30 billion of cash in transactions accounts? ?What would the lending capacity of the banking system be after such a portfolio switch? How large would the money supply b..
You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested in investing in a new factory. However, the CEO is unsure of where they should invest. Explain the impact of these policies on your investment..
How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule? Why do automatic stabilizers minimize the lag problems with fiscal policy?
Assuming that wages in an alternative location are expected to always be higher than wages in the current location, an increase in the interest rate is expected to cause the net benefit associated with mobility to:
If the dollar appreciates in value relative to foreign currencies
Suppose the U.S. and Mexico both produce 2 goods, tablets and cereal, using 2 inputs, capital (K) and labor (L). The production of tablets is capital-intensive, and that of cereal is labor-intensive.
q1. suppose that bargaining as envisioned by the coase theorem can take place and that the homeowners initially hold
Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
A paragraph or so, explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.
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