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Which policy (monetary or fiscal policy) achieves quicker results? Does the one that achieves quicker results make it a more powerful policy instrument? Why or why not?
Elucidate what set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.
The U.S. government strongly encouraged unions to be formed in the early 1940s because they held the view that unions would help to
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools. Do yo..
Do you agree or disagree with the following statement? "Politicians would make more rational economic decisions if they weren’t running for re-election every few years.” Are there any benefits of making politicians go up for re-election?
A firm is considering an investment in a new machine with a price of $18 million to replace its existing machine. The current machine has a book value of $6 million and a market value of $4.5 million. The new machine is expected to have a four-year l..
Describe the equilibrium price and sales of X. Let PY = $10. Determine whether X and Y are substitutes or complements.
In looking at GDP we see that not all aspects are counted. Do you find that the items like buying a home or a used car should be counted in GDP?
In which of the following ways is the private market sector similar to the public sector in terms of decision making?
An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest ra..
You are in the market for a stock that is currently selling at $20. You intend to sell the stock immediately after you receive a dividend payment of 20 cents per share. Moreover you believe that you can sell the stock at $21 per share. If bonds are c..
Explain in words and in diagrams how a tax on high-skilled labor burdens low- skilled workers. Which of the following taxes do you think would cause the larger excess burden? In one or two sentences explain why?
Sal’s satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are PNY = 150 – 3*QNY or QNY = 50 – 1/3 * PNY PLA = 120 - 3/2 * QLA or QLA = 80 – 2/3 * PLA where Q is in thousands of..
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