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The year 2014 closed with the unemployment rate just below 6 percent, real GDP growing at roughly 2.5 percent, inflation below 2 percent, and the federal budget showing a deficit under 3 percent of GDP.
A. Give one or more arguments for engaging in expansionary monetary or fiscal policies under these circumstances.
B. Give one or more arguments for engaging in contractionary monetary or fiscal policies under these circumstances.
C. Which arguments do you find more persuasive?
It is priced at only $400. Assuming your opportunity cost of funds is 5 percent, which refrigerator should you purchase.
XYZ School District is having budget issues and is facing the possibility of cutting some programs. How could one use ethical principles to address their budget issues?
q.suppose a firms production function is given by q l12k12. the marginal product of labor and the marginal product of
In the short run, labor is the only variable factor used by a firm in the production of a certain product. The manager of the firm has estimated that the marginal product of labor is given by MPL = 160/√L. The firm is maximizing profits by employing ..
You are responsible for detecting the source of errors when the computer system fails. From your analysis you know that the source of error is the disk drive, computer memory, or the operating system. You know that 50% of the errors are disk drive er..
The role and importance of international business for national economies - Harvard reverencing. international trade pattern.
If the government wants to contract aggregate demand, it can ________ government purchases or ________ taxes.
In January, the interest rate is 5 percent and firms borrow $50 billion per month for investment projects. In February, the Federal government doubles its monthly borrowing from $25 billion to $50 billion. That drives the interest rate up to 7 percen..
A producer’s production function is q=6K^(1/3)L^(1/2). The market price for the firm’s output is p, the cost of capital is $4 per unit used and the cost of labor is $3 per unit. Write an equation for the firm’s long-run profit. Find the factor demand..
If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
The cash flow associated with a stripper oil well is expected to be $3,000 in month one, $2,950 in month two, and amounts decreasing by $50 each month through year five. 1. What is the cash flow in the last month of year 5? 2. At an interest rate of ..
Over the last decade, several firms have entered this industry and, as a consequence, Forey is earning a return on investment that roughly equals the interest rate.which market structure best characterizes the industry
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