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1. Consider the following statement: “Because deficit reduction is costly to the economy, governments should never run budget deficits.”Do you agree with this statement? Briefly explain.
2. According to Bloomberg.com, “At an Oct. 7 foreign-exchange conference in New York . . . Alan Greenspan called the budget gap ‘scary’ and said the federal government needs to cut spending on entitlements . . . ”Why does former Fed Chairman Alan Greenspan find the budget gap scary?
Congratulations again. You've just been appointed economic advisor to Examland. The mpe is .6; autonomous investment is $1,000; autonomous government spending is $8,000;
Illustrate what does this suggest about the natural free trade pattern of specialization in Argentina. i.e. would we expect that it would be a net importer or exporter.
What are two possible fiscal policy solutions for the problem? Using a Keynesian approach, you should be able to get numerical solutions. More points are given for numerical solutions.
The government levies an excise tax of 5 cents per unit sold on the sellers in a competitive industry. Both supply and demand curves comprise some elasticity with respect to price.
By specializing in the production of one good, a company is able to benefit from economies of scale which increases its revenue. Which of the following is an attribute of specialization?
(a) What is mean by that Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly. (b) Explain the importance of mergers in oligopolistic markets. Is there much price competition in an oligopolistic market
Suppose demand function has changed t0o Qd2 = 14-P. What is the new equilibrium price and quantity. Show your work
Suppose the following table describes the marginal costs and marginal benefits of waste (garbage) reduction. What is the optimal amount of garbage What is the situation if no garbage is allowed to be produced Percentage of Waste Eliminated/Marginal..
Find the equilibrium quantity and price. What is the total health expenditure on the services considered in the demand-supply functions?
The Hair Stylist, limited, has a monopoly in College Park market because of restrictive licensing requirements, and not because of superior operating efficiency.
In a certain year the aggregate value demanded at the existing price level consists of $100 billion of use, $40 billion of investment, $10 billion of net exports, and $20 billion of government buy.
Elucidate what is the difference among real GDP and nominal GDP.
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