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Economists have identified two kinds of macroeconomic expectations.
a. Define them.
b. What are the implications for macroeconomic policy of these two forms of expectations?
2. Write down the government budget constraint and explain how it can be used to understand the relationship between fiscal and monetary policies.
Assume that a monopolist decides to maximize revenue instead of profit. How does this operating objective change the size of the deadweight loss If you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight los..
Call this graph Graph 1. Label this demand curve D1, and this supply curve S1. Draw the new demand curve given by this change, labeling it D2. Show the new equilibrium price and output, labeling this point A.
How does a change in the tax rate affect this level of income?
How does a minimum wage imposed under monopsony differ in results as compared with a minimum wage imposed under perfect competition? (Assume the minimum wage is above the market-determined wage.)
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor
Find the dimensionless equation and suggest an expression for the solution in dimensionless form.
In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Who has a comparative advantage in producing caps? If Sue and Tessa specialize and trade, who will gain?
Online Educators (OE), a not-for-profit firm exempt from taxes, is considering replacement of some electronic equipment associated with its distance learning (DL) facility. They spent $100,000 on the equipment 3 years ago and have depreciated it t..
a uniform plank is supported by a fixed support at A and a drum at B that rotates clockwise. the coefficients of static and kinetic friction for the two points of contact are as shown.
Suppose the following dynamic voting protocol is in effect: first, there is a vote between a and b; then the winner goes against c; and the winner of this contest will be implemented. Focus on SPE where voters do not use "weakly dominated" strateg..
Does the median voter theory explain voters' rejection? If California lowers the highest tax rate to below the current 10.5 percent and cuts some free benefits, how might California's Lorenz curve change?
Assuming there is no way to make other residents contribute, is Eugene likely to raise the necessary $1,000? Why or why not? What could he do to improve his chances of success?
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