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1. What is the relationship between fiscal changes and the multiplier effect? Why does a balanced budget tend to stimulate the economy?
2. When might more government borrowing be inadvisable?
Your firm produces clay pots entirely by hand even though a pottery machine exists that can make clay pots faster than a human. Workers cost $80 per day and each additional worker can produce 20 more pots per day
Let Y1, Y2,...,Yn be n i.i.d. random variables with common mean µ and common variance σ2. Let Y¯ denote the sample average. Define the class of linear estimators of µ
You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..
Draw the resulting T P curve to scale, relating output to labour.
The restaurant sold all the wine to customers for $45 each. For the total wine production, calculate the value added of Larson and of the restaurant.
Consider the travel network shown in Figure 16.12 in which the probabilities of selecting a route from each node are shown in parentheses.
A morgage banking company has been evaluating the merits of a 50 years morgage in (in addition to thier popular 30 years morgage). the basic idea is to reduce the monthly payment and make home owenership more affordable.
By the numbers . Using the U.S. Bureau of the Census data on state and local governments, find the amount of state aid to local governments from 1997 to the most recent available year and calculate the amount of aid as a percentage of general reve..
Suppose that the economy is thought to be 2% above potential (that is, the output gap is 2%) when potential output grows 4% per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2% over the past year.
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q)=150 + 28Q - 5Q^2 and C(Q) = 100 + 8Q. (note: MB(Q) = 28 -10Q and MC(Q) = 8). Write out the equation for the marginal net benefi..
The DOJ does not observe firms costs and therefore assumes that marginal costs are constant and equal to c1, c2, and c3 in the three markets. a. If firms in M2 or M3 are colluding, what price will we observe
In the last month, the price of gasoline increased by 20%. Your job is to determine what caused the increase in price: a change in demand or change in supply. Ms. Info has all the numbers associated with the gasoline market and she can answer a si..
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