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A country has a floating exchange rate. Government spending now increases in an effort to reduce unemployment. What is the effect of this policy change on the exchange rate value of the country's c
Suppose that the economy is currently at the full employment position. Using the AS-AD and IS-LM models explain the short run and medium run impacts of a decrease in budget deficit.
Use the sticky-wage theory of aggregate supply to explain what will happen to output and the price level play in this adjustment? be sure to illustrate your analysis in a graph.
Equilibrium is inefficient because MRS and MRT are different. Show that a tax on the production of good 2 can eliminate the inefficiency of the monopoly.
What was the size difference between the two - the negative/positive GDP gap? If the multiplier was 2 in that period, what was the size of the economy's recessionary/inflationary gap?
Determine the optimal average cash balance for the person who earns $1000 per month (Y), can earn 0.5 percent interest per month (i) in a saving account, and has a trip to bank cost i.e. transaction
While there is an unlimited demand for discount fares, demand for full fares is estimated to be anywhere between 10 and 30. How many seats should be protected for full-fare passengers?
Explain the nature of the externality problem and show that the equilibrium is not Pareto optimal. Would these runners embrace an institution that limited their ability to use steroids?
Find the price and quantity if Edison were an unregulated monopoly. Find the sum of consumer and producer surplus for the case where Edison is regulated and where it is not.
Discuss the two views of government intervention in a market-based health care system. What role does the politician play in both of these views?
If GDP increased by 5 percent In the same year that the deficit is run, what happens to the GDP? What happens to the level of debt held by the public as a percentage of GDP?
Will the short-run marginal cost decrease or increase? Why do these firms not replace all their older equipement with new equipment in the long run?
If the government would like to increase the equilibrium level of output (Y) to the full-employment level Y* = 2,700, by how much should government purchases (G) be changed?
If the price index for Mexico was 125.2 in 2008 and that for the United States was 106.7 in 2008, was the dollar overvalued or undervalued in 2008 according to PPP? Explain.
Illustrate the effects of removal of the tariff. Label the free-trade and tariff equilibria in terms of consumption, domestic production, imports, and domestic and world prices.
Estimate the amount of the net effect on the country's welfare from removal of the tariff. Show and explain your work.
The ?rm to distinguish high-ability workers from low-ability workers in the labor market. What effects does this have on e(w) and the ef?ciency wage?
Determine the aggregate economic effects of the combination of the shock to the economy and the government's response to it.
Quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units?
Consumed in three different years: $10 and 100 units, $4 and 57 units, and $8 and 88 units. Can we conclude that the market demand for X slopes upward?
Cars arrive at a rate of one every 5 minutes (or 12 per hour), and the number of arrivals per time period is described by the poisson distribution. What is the probability there are more than three
Suppose the government has imposed a price ceiling on cellular phones. Which of the following events could transform the price ceiling from one that is binding to one that is not binding?
Explain and illustrate the effect of expansionary fiscal policy on equilibrium output predicted by the Mundell-Fleming model under (i) flexible and (ii) fixed exchange rates.
Make way for projects that would generate higher tax returns for the community. Explain it in 2 paragraphs. Be sure to list the title of the article you read and its site.