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Would each of the following groups be happy or unhappy if the U.S. dollar appreciated? Explain. Problems and Applications a. Dutch pension funds holding U.S. government bonds b. U.S. manufacturing industries c. Australian tourists planning a trip to the United States d. an American firm trying to purchase property overseas
Suppose the U.S. economy is in a recession and there is rising inflation. Suppose you are in charge of monetary, fiscal, and exchange rate (i.e., influencing the value of the dollar) policies.
During the period 1973-1975, the United States experienced a deep recession with a simultaneous sharp rise in the price level. Would you conclude that the recession was the result of a supply shock or a demand shock.
someone drives through green hills you see large luxuriant homes spread across very large and beautiful pieces of real estate. Why are nice homes usually built on expensive lots rather than cheap ones
The government decides that eating ice cream is a socially desirable activity and passes a law giving consumers 50 cents for each ice cream cone they eat. What is likely to happen in the marketplace once this policy is in effect What are consumers..
Finding ways to improve humanity's living standards is the point of economics. Having a good measure of living standards, you may think, is therefore pretty fundamental to the discipline. For decades economists have turned to gross domestic produc..
Imagine knowing with certainty that interest rates will not change over the next five years. Identify how this fact would change the behavior of a business of your choice.
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent. How would I describe this industry?
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers.
Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the Earned Income Tax Credit (EITC) can entice some people who otherwise would not work to start working.
Use the market-clearing Real Business Cycle model developed in chapters 9-11, to analyze the effects of expectations of higher future government spending and (lump-sum) taxes. Under what conditions can this explain a slow recovery?
Is it not ethical to use employee as a puppet to make money with out their consent? What are your thoughts on Adam Smith's principle of the Invisible Hand?
Assume you are asked to do market analysis in an area in which a natural disaster has recently occurred. For example, Nashville after Spring floods or New Orleans after Hurricane Katrina.
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