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What is "automatic fiscal policy" and how does it fit Keynesian fiscal policy to stimulate the economy in a recession, in terms of Government spending, taxation and budget deficits in a Demand driven economy. Use the consumption function model to explain the impact of government spending using the concepts of the Paradox of Thrift, the Multiplier effect and the role of Expectations (Consumer Confidence.)
A friend borrows 500$, agreeing to pay back the loan principal plus 75$ interest one month later. One year goes by and he doesn’t pay. Exactly one year later you ask him to pay the loan immediately plus an interest with monthly compounding.
Assume that a monopolist has a demand curve given by P = 1500 − 4Q, and T C = 100 + 5Q2 with MC = 10Q. Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves. Calculate the consumer surplus. Calculate the producer surplus.
It costs ?$34,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel(85% ethanol and 15% gasoline). If the station makes a profit of $0.07 per gallon from selling E85 and sells an average of 20,000 gallons..
A company produces x units of commodity A and y units of commodity B each hour. The company can sell all of its units when commodity A sells for p=90−5x dollars per unit and commodity B sells for q=70−4y dollars per unit. The cost (in dollars) of pro..
Entrepreneurial firms usually address economic substitutes rather than competing against large firms directly. Ultimately, to substitute for a product means to do without it. The entrepreneurial firm solves that problem. How might your own business i..
What is externality? Why don't people take into consideration the external costs of their actions? Describe four major income maintence programs in the United States. Suppose a union negotiates a wage that is above the market-clearing wage. What prob..
Opponents of free trade often argue that trade must be restricted in order to save domestic jobs. As a free-trader, how would you counter this argument?
If a recessionary gap were to appear, how might the economy adjust? Can/should we rely on it to adjust itself? Is it possible that the economy will never adjust to a gap, and things will just get worse and worse?
A dozen eggs cost $0.88 in January 1980 and $2.11 in January 2015. The average wage for production workers was $7.58 per hour in January 1980 and $19.64.
Suppose the Home firm is considering whether to enter the Foreign market. Assume that the Home firm has the following costs and demand.
Give evidence from each site that this might be true. Explain why the products and business environment of both companies cause this difference.
q.a company designs websites for clients. much of the work is done in-house but it finds that it must subcontract i.e.
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