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Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume?
Illustrate what must the drivers have the drivers believed about the price elasticity of demand for taxi rides
Switch grass was promised to be the new crop that would replace corn as the primary feedstock for bio-fuels a couple of years ago. Why have we still not switched to switch grass.
American smoke 470 billion cigarettes and the average price per pack was $2. If the price elasticity of demand is -0.4 and price elasticity of supply is 0.5, compute the demand and supply linear equation.
How is this shifting of AD curve going to affect the price level and output level of the economy.
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Describe three problems of decentralization that occurred under the Articles of Confederation. For each problem you list, identify one solution that the Constitution provides to address the problem.
If operators receive $25 an hour, how many operators should the agency hire. Illustrate what is the most the agency would be willing to pay the first operator.
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average.
Illustrate what is the level of consumption at the equilibrium level of income. Compute the marginal propensity to save for this economy.
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
How many shares of common stock must be issued as well as at what price, to raise the required capital.
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
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