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Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid an increase in inflation and bring the economy to full employment as rapidly as possible.
Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals? What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Provide justification and examples to support your conclusions.
A person rents a home for which she pays the landlord $12,000 a year. The can can be bought for $100,000 and tenant has this much money in a bank account that pays 4 percent interest per year.
Elucidate the excess of cost over the marginal price at the profit maximizing price-quantity combination?
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Elucidate the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with those of trade due to other causes.
Describe the distinguishing features of various forms of regional economic integration, including their benefits and costs.
According to the Solow growth model, how would a permanent increase in energy prices affect capital per worker and consumption per worker in the long run (that is in the steady state) Explain using a graph. b. In an endogenous growth model
The price received by sellers in a market will decrease if the government imposes a binding price floor in that market or else.
What is national saving? What is private saving? What is public saving? How are these three variables related?
price floor. There is considerable interest in whether the minimum wage rate contributes to teenage unemployment. draw a demand and supply diagram for the unskilled labor market, and discuss the effects of minimum wage. Who is helped and who is hu..
Draw a demand and supply graph for tortilla market and use itshow the effect on this market of an increase in the price of corn.Once again, be sure to indicate the equilibrium price and quantitybefore and after the increase in the demand for the e..
The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase the contract of an aging superstar basketball player from another team. The general manager of the Bobcats wants to analyze the offer as a capital ..
As seen during financial crisis of the 1930s and in history, markets are globally interconnected. Aside from financial markets, different countries have different resources.
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