Reference no: EM13891924
1. To what degree is the public debt a burden to future generations?
2. Suppose income taxes and unemployment compensation were cut by an equal amount. How would aggregate demand be affected?
3. As late as 1992, we were running budget deficits of nearly $300 billion. How do you explain the decline in the deficits through the rest of the decade of the 1990s?
4. Explain the crowding-in and crowding-out effects. How valid are these two concepts?
5. If you had a job as a financial counselor and a bad recession hit, what advice would you give your clients to enable them to keep their heads above water?
6. Using the AD/AS diagram possibilities, explain which diagram explains the scenarios and why that is the diagram that fits the scenario best:
7. U.S. Federal Reserve allows money supply to fall during 1930s
Federal spending increased during World War II
Investment tax credits of 1960s
Oil price increases of 1970s
8. Using the Keynesian aggregate expenditure model, sketch the diagram corresponding to the following historical events and explain their importance:
Tax increases of 1990s
Vietnam War spending of 1960s–1970s
Tax cuts of 2000s
|
Is vertical integration into pig farming needed to maintain
: Large producers of ham and pork food products require a steady supply of pigs over a long period of time to operate efficiently. Is vertical integration into pig farming needed to maintain that steady supply?
|
|
Long-run total cost function for firm producing skateboard
: The long-run total cost function for a firm producing skateboards is. Calculate the marginal cost function. What is marginal cost at the output level in part b?
|
|
Long-run and short-run aggregate supply curve
: The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward fu..
|
|
Calculate the short-run average cost function
: A firm has a production function given by q=2 sqrt(KL) In the short run, the firm’s amount of capital equipment is fixed at K=100. The rental rate for K is v=$1, and the wage rate for L is w=$4. Find the firm’s short-run total cost function (STC). Ca..
|
|
What degree is the public debt burden to future generations
: To what degree is the public debt a burden to future generations? Suppose income taxes and unemployment compensation were cut by an equal amount. How would aggregate demand be affected? As late as 1992, we were running budget deficits of nearly $300 ..
|
|
An agricultural firm has production function-cost to produce
: An agricultural firm has a production function (products of the whole year) given by q=500sqty(SF) q is output of agricultural products in pounds. S is land area in square feet. F is number of farmers working. Find the best way to produce 5000 pounds..
|
|
Manufacturers mark-up necessarily represent profit
: Electrotech, a maker of household smoke detectors, buys resistors for its smoke alarms for $.15 each. The resistor manufacturer marks-up the resistors from $.10. Does the resistor manufacturer’s mark-up necessarily represent profit?
|
|
Produces its monopoly quantity in equilibrium
: In a Stackelberg industry with identical firms we know that firm 1, the leader, produces its monopoly quantity in equilibrium. Given this, does the Stackelberg leader necessarily earn a higher profit than the Stackelberg follower? Explain.
|
|
Part of its profit-maximizing policy
: Suppose that a monopolist has the ability to impose a two-part tariff pricing policy. Would it necessarily set a positive fee as part of its profit-maximizing policy? Explain. What would limit a monopolist’s ability to set such fees?
|