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Markets are a very good way to organize economic activity in our economy. Why do we classify price floors and ceilings as a type of market failure and why does the government need to get involved in these types of markets?
Explain how have these policies affected the employment rates for your chosen industry? How have these policies affected the growth of the industry.
The stock of ABC Corporation will go ex-dividend tomorrow. The dividend will be $0.50 per share, and there are 20,000 shares of stock outstanding.
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Assume that the yearly personal income per capita is in the US is $39,000 in 2008, the price of gasoline is $4.00 per gallon, and the consumption of gasoline per capita is 450 gallons.
Suppose the Lexington mayor caps the amount police can ne speeding motorists at $500. The police vow to step up enforcement in order to cintinue to deter speeding. How high must the probability of being caught speeding be in order to deter most pe..
Now suppose that policy makers like to increase national income. Which of expansionary fiscal policy and expansionary monetary policy is more effective to achieve the policy goal? Explain with the IS-LM model.
Write a letter to the editor of your local paper either supporting or criticizing the proposed $500,000 subsidy.
Suppose that the company is a price taker and the market price is $10. How many units will each plant produce?
Let’s consider the effects of inflation in an economy composed only of two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In 2000, the price of beans was $1, and the price of ric..
Illustrtae what is the required rate of return on each of the two company's equity.
Assume the consumption function is given by C=200+0.5(Y-T) and the investment function is I=1000-200r, where r is in percent. G equals 300 and T equals 200. Find the equation for the IS curve (hint: use the formula for equilibrium Y = C + I + G and t..
Discuss the sticky-wage model of aggregate supply, carefully identifying any assumptions made. How well does the sticky-wage model explain the observed behaviour of real wages over the business cycle?
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