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Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer payments $50 billion lower. Using these estimates, what was the cyclically adjusted budget deficit or surplus for the year?
There exists a debate among monetary policymakers as to the appropriate inflation measure that should be used to guide policies. Four alternatives are the consumer price index, the consumer price index excluding food and energy prices, the personal c..
Describe one weakness and one strength of the gold standard. Do you agree with Milton Friedman that any system of pegged exchange rates is not a satisfactory system for countries with independent political systems; or do you agree with Ronald McKinno..
Jack's construction company is considering the purchase of new equipment at a cost of $10,500; with an estimates salvage value of $500 and projected useful life of 4 years. Determine the straight-line (SL), sum of year's- digit (soyd) and double decl..
What is globalization (please define it both as a process and outcome) What factors can you identify in explaining why globalization occurred How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequality ..
Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical capital.
Suppose your mayor has asked you to come up with an excise tax that will be as efficient as possible. Choose a good to be taxed and explain why it will cause a low deadweight loss.
Which of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the U.S. recession of 2001.
Cost minimization for a given level of production is equivalent or identical to the concept of product maximization for a given cost level.
You are employed as an economic consultant to the regional planning office of a large metropolitan area, and your task is to estimate the demand for hospital services in the area. Use this information to project the impact of the following changes on..
Should we reduce or eliminate taxes on corporate profits in the United States to lure more of these companies back to the U.S.?
What will be the government deficit. If the government finances the deficit by issuing bonds, what amout of bonds will it issue?
Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.
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