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You are the chief economic advisor of the president of Dreamland. Right now the country has unemployment of 7.5%. The country has suffered a sever recession a few years ago and it is showing some signs of slow growth lateley but a lot of people are still out of jobs. Federal annual budget deficit of $1 tirllion a year and a national debt of $16.5 trillion. It's currency also has lost a lot of value against major foreign currencies creating a backlash from other major trading partners recently. Some manufacturing companies are moving out of the country in search of cheap labor and the ones at home are not doing as good and some big ones like auto are trying to cope well after coming out of bankruptcy. Energy, food and commodity prices are also relatively high and going higher, leading to some inflationary pressure in the economy and the housing market is in trouble with lot of foreclosures leading ot a lot of Bank failures. Dreamland is also facing a huge trade deficit and going through mandatory sequestration. The President needs advice on how to turn things around quickly.
a. Advise the President in detail on what he should do to turn the economy around.
b. What would happen to his attempt to attain a blanaced budget?
c. How would the President tell that his economy is approaching equilibrium or getting better?
Would the effect on aggregate demand be larger if the Bank of Canada took no action in response, or if the Bank were committed to maintaining a fixed interest rate.
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies. Elucidate what production level are scale economies exhausted.
A company has to decide weather to lease or buy a crane for 20 Years, please calculate both seperatly and show which one is the better option.
If both persons carry an average balance of $3000 on their credit cards for 3 years, how much more money will Edward repay compared with what Jorge owes
A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. Illustrate the total cost of producing 101 uni..
Avocado farmer, Mrs. Henny Brown is worried about wealth transfer also unjust taxation.
While waiting for their buses to leave, they decide to browse your school bookstore and buy some items that catch their eye. How would this affect the store’s inventories?
Illustrate what are the net benefits of this program. What would the net benefits be at a discount reate of 2 percent.
Evaluate the influences of intellectual predictors of the following economic theorists: Adam Smith, David Ricardo, also Karl Marx.
Use the midpoint method to compute your price elastcityof demand as the price of compact discs increases. Compute your income elasticity of demand as your income increases.
She can charge different prices in the two markets. Illustrate what is the profit-maximizing combination of quantities for this monopolist.
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
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