Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Clinton deficit reduction package
In 1992, the U.S. deficit was $290 billion. During the presi- dential campaign, the large deficit emerged as a major issue. When President Clinton won the election, deficit reduction was the first item on the new administration's agenda.
a. What does deficit reduction imply for the medium run and the long run? What are the advantages of reducing the deficit?In the final version passed by Congress in August 1993, the deficit reduction package included a reduction of $20 billion in its first year, increasing gradually to $131 billion four years later.
b. Why was the deficit reduction package backloaded? What are the advantages and disadvantages of this approach to deficit reduction?In February 1993, President Clinton presented the budget in his State of the Union address. He asked Alan Greenspan, the Fed chairman, to sit next to First Lady Hillary Clinton during the delivery of the address.
c. What was the purpose of this symbolic gesture? How can the Fed's decision to use expansionary monetary policy in the future affect the short-run response of the economy?
A pharmaceutical firm has a monopoly on a new class of vasodilator. The market demand is given by P=240-0.01*Q, and thus MR=240-0.02*Q. The monopolist's marginal cost is constant and equal to 20. Calculate the profit-maximizing price.
given an mpc of .8 if the equilibrium level of aggregate expenditure is 80 billion and there is a reduction in
What is the Federal Funds Interest rate?
Explain why a reduction in the resource constraint is analogous to an increase in the discount rate. Suppose firms perceive a decrease in demand for their product now and in the future. Will this speed up extraction?
Why is the demand for water price-inelastic and in those regions where outdoor use of water makes up relatively large portion of total use, the price elasticity is high. Why?
choose and research a specific business that is publicly traded where there has been a pattern of change in a
Actors typically get contracts that specify that they get a percentage of "the gross," the total revenues that the movie brings in. Why might actors want contracts structured that way? Why might producers be willing to agree to that, and how d..
Discuss the firm's activities outside the U.S and identify which economic concepts, such as comparative advantage, apply to your firm.
Assume a new Mexican restaurant, specializing in burritos, wants to open on Green street. Assume the restaurant has some market power over the price they set, and that they face a fixed cost of setting up a restaurant.a. Illustrate graphically how th..
explain the difference between a positive and negative externality. in your analysis make sure to provide an example of
Draw Bridgettes budget constraint, putting mystery novels on the horizontal axis. At her consumer optimum, she buys 30 CDs and 15 mystery novels.
Which strategy will you follow? Will you decide to study, or not study - Calculate consumer surplus and producer surplus for this perfectly competitive outcome.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd