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Discuss the source of shocks to the economy. How would you characterize these shocks? What government policies can reduce their impact on the economy? Give specific examples.
Microeconomics, Economics
Question: From time to time, including but not limited to the 1971-3 experience in the US, wage and price controls have been imposed to reduce inflation. Yet when these controls were eventually lifted, the price index qu ...
Question - Let demand be given by QD = 8 - 2P; let supply be given by QS = 2P. A tax of $2 per unit is imposed on consumer, what is the new equilibrium quantity? a. 1 b. 2 c. 3 d. 4 e. 5
Quesiton: Suppose there are two individuals and two goods. The initial endowments are ?1 = (1, 0) and ?2 = (1, 1). Preferences are given by u1(x, y) = x + y and u2(x, y) = y (a) Prove that in equilibrium-if it ever exist ...
Question: Coke is manufactured by a publicly held company. For this product predict the following: Where is the product manufactured? Given the suggested retail price of the company and using a 50% markup on price at ret ...
Question: The producer of a movie has sole rights to make DVDs of it and is thus a monopolist in that particular movie. Assume that Blockbuster Video also has a near-monopoly on retail rentals. The producer could charge ...
Question: "Social and institutional innovations are as important for economic growth as technological and scientific inventions and innovations." What is meant by this statement? Explain your answer. The response must be ...
Question: A firm is currently producing 30 units of output. At this level of output produced: Its average total cost is 110 (ATC =110) The market price per unit of output is 125 MR= 30 MC = 50 A) Is this firm making prof ...
Question: DeBeers, the dominant firm in diamond mining and wholesale marketing, has until recently been unintegrated into any downstream activities. In the past few years, however, it has opened a handful of its own reta ...
Question: Consider a manufacturer that sells its product to a retailer who resale it to final consumers. The two firms do not have any production costs. The market has 100 consumers of type A and 80 consumers of type B. ...
Question: Using the data set macro, find the least squares estimate of the following two models: Model A: Inves = ߈0 +߈1Interest and Model T: Inves = ߈0 +߈1Interest +߈3GNP a) What does "least squares estimates" mean ...
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