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Why do proponents of active policy recommend government intervention to close an expansionary gap? Briefly discuss.
Why might an active policy approach be more politically popular than a passive approach, especially during a recession?
Microeconomics, Economics
Question: The demand for boobles can be written as: Q = 11,000 - 8P. Calculate the price, quantity, total revenue and marginal revenue when the elasticity of demand = -2.2. Calculate the price, quantity, total revenue an ...
Question: There are three consumers A, B and C. Consumer A is willing to pay 8-3F dollars for a unit of flowers for the public square, B is willing to pay 2-3F dollars for a unit of flowers, and C is willing to pay 9-3F ...
Question: Read the WSJ article on the attempted monopolization of the plastic clothes hanger market in this week's notes. Why does monopolization have the potential to increase prices and profitability significantly in t ...
Quesiton: The firm's demand for labor is a derived demand. A. Explain the law of diminishing marginal returns and show graphically how it affects labor demand curves. B. Explain and show graphically why the marginal reve ...
Question: Describe your expectations on finding law from anywhere in the world by use of the internet. Why is it important to have a uniform method of citation of that law? The response must be typed, single spaced, must ...
Question: Classify the following as consumption, fixed business investment, residential construction, inventory investment, exports, imports, government purchases, intermediate goods, or none of the above. (A) Student pu ...
Question: Consider an increase in the demand for petroleum engineers in the United States. How would the supply of these engineers respond in the short run and in the long run? Conversely, consider a decrease in demand f ...
Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...
Assume that the marginal utility of Good X is strictly zero but the marginal utility for Good Y is strictly positive. What is the consumer's indifference curves look like? If the prices of both goods are positive, what ...
Question: In some ways monitoring is easier in a partnership than a corporation, where shareholders monitor directors. In what ways is monitoring easier? In what ways is it not? The response must be typed, single spaced, ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
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