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The U.S. economy experienced large trade deficits in the 1980s and 1990s and tremendous economic growth in the mid- and late-1990s.
A. Trade deficits have an effect on inflation. Explain the relationship between trade deficits and investment verbally and mathematically using the concept of the balance of payments.
B. Explain verbally the relationship between investment and long-term economic growth and describe the relationship graphically in an AD/AS graph.
Illustrate what kind of gap-inflationary or recessionary-will the economy face after the shock, and what type of fiscal policies, giving specific examples, would help move the economy back to potential output.
q. 1 are there any firms that are really true monopolies? that is there is absolutely no substitute for what the firm
A nation has a tax rate of 20% on the first $20,000 of taxable income, 30% on the next $30,000, 40% on the next $20,000 and then 50% on all taxable income above $70,000. Find the ATR of someone with a taxable income of $100,000. How much is a tax cre..
Illustrate what happens in the long run when the patent expires also other firms are free to use the technology.
In order to create an effective incentive compensation scheme, you must have. Principal-agent problems: Principal-agent relationships:
_____ focuses on how individuals manage a global business.
A positive demand shock in the very short run would cause _____________ in prices; in the long run, it will cause _____________ in prices.
q.assume there are 2 products clothing as well as soda. both brazil plus the us produce each product. brazil
Explain why the budget line can be called "objective" but an indifference curve is called "subjective." Explain why, if a consumer is to be in equilibrium, the marginal rate of substitution of good X for good Y must equal the negative ratio of the pr..
A goal of the consumer is to maximize utility. On separate diagrams, plot the income-consumption curves for X1 and X2. Explain why each has the particular shape drawn.
Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and net annual revenue. Use a MARR of 4% per year and a 5-year study period.
Assume two power plants release Sulfur Dioxide (SO2) in Athens, GA. A1 is the abatement in firm1 and A2 is the abatement in firm 2. Please calculate the total costs and marginal costs of abatement for both firms under a uniform allocation approach. U..
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