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Q. A stock market boom increases value of stocks held by households. Illustrate what kind of gap-inflationary or recessionary-will economy face after shock and illustrate what type of fiscal policies would help move economy back to potential output?
Q. A number of specific tax provisions passed Congress and were enacted into law in 2008. Assume that you were a prospective candidate for Congress in 2008. Write a brief essay describing changes and elucidating why y are good or bad.
Compute the short- run and long- run results, explain the changes in the price and in the number of firms.
A purely competitive wheat farmer can sell any wheat he grows for $30 every bushel. His five acres of land
A car manufacturer claims that its vehicles average at least 25 miles per gallon.
Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.
There is a potential entrant, who needs to pay a sunk cost of f to enter in this market. Firms may produce any quantity that does not exceed its capacity.
A Los Angeles firm uses a single input to produce a recreational commodity
sofa manufacturer presently is using 50 workers also 30 machines to produce 5,000 sofas a day.
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
Enlighten the budgetary challenges state governments would face if the economy were to go into a recession also the unemployment rate were to increase.
A major state university in the South recently raised tuition by 12%. An economics professor at this university asked his students, "Due to the increase in tuition, how many of you will transfer to another university.
Elucidate how many car companies will buy a latest car assembly machine. Interest payments are made once a year.
Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? .
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