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Macro DQ
Your Recession Strategy
Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid an increase in inflation and bring the economy to full employment as rapidly as possible.
Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals? What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Provide justification and examples to support your conclusions.
If you think that your company's performance is not sensitive to general economic business cycles, then describe why it is stable as the economy moves up and down.
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..
If the person who decides how voting is to be done can significantly influence the outcome, which of the following must be true of the voting system.
A firm has a long-run cost function C1(y) = y^3 - 10y^2 + 30y. 1) Derive the firm's long-run average cost function 2) Derive the firm's long-run marginal cost function 3) Find the level of production with the lowest average cost 4) What is..
Ignoring transaction price explain how much would a buyer have to pay for one call option contract.
the blair company's three assembly plants are located in california, georgia, and new jersey. previously, the company purchased a major subassembly, which becomes part of the final product, from an outside firm. blair has decided to manufacture th..
Agricultural markets are often cited as exhibiting the characteristics of the perfect competition market structure. Does farming fit this model?
How do changes in the value of the U.S. dollar impact Apple Inc? Please list examples of the impact on Apply Inc when the U.S. dollar has an increase and decrease in value? Please provide one reference.
At the beginning of the year Jamie has $100 to invest. He has two options. The safe investment will provide an annual rate of return of 20% for sure. The risky option will provide an annual rate of return of either 0% or 42%, and these two possibi..
Someone claims that under efficiency wage models "if the wage rate increases in a market with heterogeneous workers then we will have a shift in the labor demand curve, and not a movement along the curve". Do you thin..
The minimum feasible long-run average cost for firms in a perfectly competitive industry is $40 per unit. If every firm in the industry currently is producing an output consistent with a long-run equilibrium, what is the marginal cost incurred by ..
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