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Question: Read the journal article, "Five Big Steps toward Faster Global Growth". Based on the information presented in the article, discuss the following:
- What are the challenges that the US economy will be faced with given a higher debt limit for future economic growth?
- Describe what would happen to GDP, the unemployment rate and the inflation rate if there is a decline in global growth.
- Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.
Draw the Circular Flow Model of a simple economy with the roles of firms, Households, Government and a foreign sector. In addition, identify the factor and product markets in this economy.
Suppose that in response to a foreign crisis, the goverment increases defenst spending to $50 billion. How would the increase in defense spending affect the economy How would the effects differ depending on the size and sign of the output gap when..
You are the liaison between the Federal Reserve Board and the U.S. Treasury Department. Your goal is to coordinate policy efforts to achieve full-employment output in the economy while keeping a fixed real interest rate.
Determine what effect should each of following have upon demand for profitable music players in a competitive market?
A company can purchase a piece of equipment for $1300 today or they can pay for it over a fiver year period with the following schedule: Year 1-$100, Year 2-$200, Year 3-$300, Year 4-$400, Year 5-$500.
Consider the iron ore production industry and assume that there are just two producers. Both of firms are identical in terms of their production cost, if the two firms can cooperate, what should they do to maximize industry profits? how does your ans..
A,B, and C decide to act illegally as a cartel, to divide the market equally among the three of them, and to set the price and output that will maximize their total profits. What price and output do they set? What is the output level that each of ..
Cash-flow analysis and monetary policy
Suppose that perfectly competitive firm faces the market price (P) $5 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output (Q) level of 1,500 units.
What minimum stopping time interval in needed to avoid injury to the knee if the person is initially traveling at 16 m/s (36 mi/h) and What is the minimum stopping distance?
1.Explore why lump sum tax, even though efficient are rarely used.2.Using demand and supply analysis, discuss how a tax on labour income (hours of work available is fixed) creates excess burden between the paid and unpaid labour markets.
Calculate my optimal consumption of roses and other goods as a function of px and M.
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