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In this discussion, you will compare and contrast monetary and fiscal policies. Consider two recent national crisis points: 9/11 and the banking failures of 2008. Was fiscal or monetary policy more immediately responsive to each crisis? Why? Was fiscal or monetary policy more effective against each crisis in the long run? Why?
What is the impact of a government shutdown on the budget?
Illustrate what is the meaning of economies of scope and explain how do they differ from economies of scale.
Assuming 100 identical firms in the industry (further assume that factor prices remain the same) what quantities will the industry and each firm supply when the product’s price is $9? What if prices are below $5?
Show the profit-maximizing price and quantity. Show the producer and consumer surplus. Show the deadweight loss from monopoly. What is the implied competitive equilibrium? Is the firm operating at a profit or a loss (how do we know)? If it’s operatin..
The link between the money market and the goods and services market exists through the impact of
A friend of yours has just returned from desert island where she was stranded alone since January 2009. Having completed Econ. 104 just prior to arriving on the desert island (and being naturally curious), Is international trade more or less importan..
The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: “There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, than in the ..
You have budgeted a maximum of $250 per month for a car loan. (a) If your bank offers financing terms of 60 months at a yearly 12% interest, what is the most you can pay for a car? Do not put a $ or comma in your answer. Make sure you put interest in..
The firm output sells competitively explain how many tons of output will be produced.
What is anticipatory repudiation? Why is it important to be able to identify this type of a breach? How does it benefit the non-breaching party?
Consider a country with an economic structure consistent with the assumptions of the classical model. Suppose that businesses in this nation suddenly anticipate higher future profitability from investments they undertake today.
What are financial intermediaries and what do they do. What information problems exist in financial relationships and how do financial intermediaries help solve them.
Write an equation for a typical production function also illustrate what every of the terms represents.
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