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Using your knowledge of the amount of time required for the many components of the federal government to agree upon and implement changes in policy (i.e., tax codes, the welfare system), can you think of any problems with using fiscal policy to stabilize the economy?
Suppose you are studying the market for shoes. Two events take place simultaneously. First, price of leather decreases, and second, consumers' income increases. What will happen to the equilibrium price and equilibrium quantity of shoes?
Advantages and disadvantages of cigarette money in this prison economy in terms of these 6 criteria.
What are the key features of the consumption function? What causes consumption to rise or fall? Does the level of consumption deserve concern today?
Each possible investment is perceived to have no risk of default. You plan to maintain this investment for a one-year period. The return of each investment over a one-year horizon will be about the same if interest rates do not change over the next y..
Which of the following is an example of a change in the quantity demanded? (Hint. For which items is there a direct change in price that leads to a change in quantity demanded) Markets are more efficient when information is perfect; an example is:
Describe the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand curve in each of your examples.
Suppose that Mr. J ustin Bieber deposits $5,000 in his checking account at Santa Monica Bank. How does this transaction affect the monetary base? Show the T - accounts for Mr. Bieber, the bank, and the Fed.
The 2010 oil spill in the Gulf of Mexico caused the oil firm BP and the US government to greatly increase purchases of boat services, various oil-absorbing materials, and other goods and services to minimize damage from the spill. Explain how your an..
Show how the transaction would have been recorded in the German balance of payments accounts. What was the net effect on the German balance of payments.
Why might regulatory agencies utilize labor more intensively than private firms? What will happen to the regulatory share of employment if the rate of growth of regulatory employment stays five times higher than overall employment growth?
Distinguish between the following views of monetary policy
Suppose the price of clerical time remains at $7.50 per hour. How high would the price of an hour of computer time have to be before the firm would find it worthwhile to use only clerks to process the payroll?
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