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1. What economic problem is the nation facing?
2. What would be the goals of your Fiscal Policy?
3. What exact Fiscal Policy would you recommend? Why?
4. Use an AD/AS diagram to show the effects of your fiscal policy on the economy.
5. Explain the advantages of your expansionary Fiscal Policy? Take a positive stand! (next)
6. Describe the affect on Y, Q, E, and Prices.
Demonstrate how an increase in personal and federal income taxes ultimately affects Bank of Canada's balance sheet.
You know from data gathered on the widget market that market demand has recently increased and market supply has recently decreased. As manager of the facility, what decisions should you make regarding production levels and pricing for your widget..
The Arena Corporation, which sells engines, has a uniform value of $500, which is charges all its consumers. But, after its competitors begin to cut their rates in the California market to $400, Arena decrease its price to $400.
Businesses usually decide in using automation and labor in production. An automotive environment may have high fixed costs and low variable costs,
Explain the law of diminishing returns in your own words. This idea can be applied to other concepts in economics. Think about your own utility from consumption. Give a personal example of diminishing utility.
Draw the AC function on the same graph. What is the firm's long-run supply curve? That is for every price p, how much will the firm produce in the long-run? Which curves are relevant now?
Julia must select between two different designs for preventing closure, which will be in use indefinitely. Model 1st has a life of 3-years and cost of $8000, and maintenance of $1000 every year.
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
Suppose that the market for radios is perfectly competitive and there is the simultaneous increase in supply and demand. What can be said about the new equilibrium relative to one before the shifts in supply and demand occurred?
Determine how does globalization lead to greater competition in market place? Discuss the implications for market structure in industries opened to global competition?
Compare the two graphs for GNP for Techistan and Growthistan. What is the difference in the final value of GNP for each country and Plot the growth rate for Techistan and Growthistan on one plot.
Please refer to Citizen Gas Company PDF for case study and questions. The case study belongs to Economics. Citizen Gas Company is a medium sized company with customers from residential, commercial and industrial sectors.
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