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Case study: rent ceilings in New York City. Suppose the demand and supply curves for rental housing units have the typical shapes and that the rental housing market is in equilibrium. Then, government establishes a rent ceiling below the equilibrium level.
A. What happens to the quantity of housing available?
B. What happens to the quality of housing and why?
C. Who benefits from rent control?
D. Who loses from rent control?
E. How do landlords of rent-controlled apartments try to get tenants to leave?
In the early 20th century worker productivity in the Horndal iron works plant in Sweden increased by 2 percent per year over a 15-year period even though the firm did not invest in new capital. What might be the cause for the increase in producti..
Describe three problems of using fiscal policy to achieve a precise level of GDP and why is frictional unemployment inevitable in an economy characterised by imperfect job information and non-zero job-search time?
Major multinational companies such as Acme attempt to track the relative movements and magnitudes of global capital investment.
Explain how would you go about resolving the issue if you were the president of a small, poor country.
Assume that the Federal Reserve acts to lower interest rates. How this will affect the U.S. economy.
Compute the intercept of the budget line on the "movie ticket" axis. c. Compute the intercept of the budget line on the "DVD rental" axis. d. Find the slope of the budget line when movie tickets are on the vertical axis and DVD rentals are on the hor..
Suppose you are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is c=40 + 5Q2. The profit maximizing output for your company is;
Illustrate why would you be reluctant to advise that your country increases its money supply.
Illustrtae what is the final impact of expansionary fiscal policy on the price-level and real output.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
You need your job and you want to help your boss. But you're just not sure in this particular situation. What is the ethical problem in this situation? What steps should you take? When should you take them? Who should you talk to about this? Why?
Analyzing many indicators of the macroeconomic situations in an economy, which includes interest rate, income, CPI, inventory levels, wage, consumer confidence and unemployment.
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