Consider the following statement: “Devoting a larger share of national output to investment will imply a higher consumption per worker and a higher living standard.” Do you agree with this claim? Explain, using the Solow model.
In: Economics
Given the current state of things with the coronavirus, we are seeing real damage being done to the economy. Policymakers are struggling to help the economy. Suppose you were in charge of either monetary policy (i.e., changes in the money supply) or fiscal policy (i.e., changes in government spending and taxing), explain what you would do and why you believe it would help.
In: Economics
Suppose an economy has been having very high inflation. The central bank has decided to decrease the money supply in hopes of decreasing GDP (the thinking is that by decreasing GDP, it will lead to lower inflation – no need to make that connection, just focus on the goal of decreasing GDP). Using the complete Keynesian model, explain in as much detail as possible what will likely happen to the economy (including GDP, the interest rate, investment spending, any multiplier effects). Finally, under what conditions would GDP be more effected (e.g., high or low mpc, steep or flat money demand, steep or flat investment schedule)?
In: Economics
Suppose a government has been running large government deficits. In order to address these deficits, the government has decided to decrease its spending (G) and raise taxes (T). Using the complete Keynesian model, explain in as much detail as possible what will likely happen to the economy (including GDP, the interest rate, investment spending, any multiplier effects). Finally, under what conditions would GDP be less effected (e.g., high or low mpc, steep or flat money demand, steep or flat investment schedule)?
In: Economics
The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand but also at the same time raising taxes to pay for the increased spending. Her suggestion to combine higher government expenditures with higher taxes is: a. The worst possible combination of tax and expenditure changes. b. The best possible combination of tax and expenditure changes. c. A mediocre and contradictory combination of tax and expenditure changes. d. None of the above. After selecting your responses to both questions explain your answers in detail, use economic terms (aggregate-spending, production, income, employment...What are the economic consequences, how would they influence the four major sectors (C+I+G+Xn) and Real GDP.
In: Economics
How does Libertarianism differ from Equal Rights arguments in the theory of Ethics and Economics?
In: Economics
During the Covod-19 pandemic ventilators became a much sought after item. Governors were competing with each other and with the federal government for these much needed life and death items.
Q1. Why did this happen?
Q2. What can be done to prevent it from recurring, say during (God forbid) a second wave.
- Include in your discussion the following key items:
Resources Quantity Supplied and Quantity Demanded Equilibrium Price and Quantity and Market Equilibrium Shortage vs Surplus Price Gouging
Market Failure Imperfect Industry Structure The Relevant Determinants of Supply and Demand
Also apply these concepts to the current situation with toilet paper and with oil.
In: Economics
Explain the central difference between the search model and the Walrasian market for labor
In: Economics
Due to the corona virus,
How much of a decline do you anticipate for the Second Quarter of 2020? Will be in recession? This would mean GDP was down during the first quarter and/or the third quarter. Will it last long enough to be the second depression in 100 yeards?
On inflation/deflation,what would your life have been like during the early 80's when the inflation rate was in double digits? Imagine what life would have been like in Germany in 1923, when prices were rising daily and the Deutschmark was losing ground daily against the dollar?
In: Economics
Post a discussion thread distinguishing between the micro and macro views of marketing. Then explain how they are interrelated, if they are. Your post should be thorough, utilizing the text, your personal experience, and any other information you are able to garner through research. A minimum of 150 words is expected to achieve full credit.
In: Economics
Write a short business report about Alibaba Group. The report must includes: Their business model, their sources of revenue, their profit for the last five years, future plans, Internet technologies using to handle Internet traffic.
In: Economics
In Chicago, one of America’s most violent cities, drug arrests have plummeted 42% in the weeks since the city shut down, compared with the same period last year. Part of that decrease, some criminal lawyers say, is that drug dealers have no choice but to wait out the economic slump.
“The feedback I’m getting is that they aren’t able to move, to sell anything anywhere,” said Joseph Lopez, a criminal lawyer in Chicago who represents reputed drug dealers.
Overall, Chicago’s crime declined 10% after the pandemic struck, a trend playing out globally as cities report stunning crime drops in the weeks since measures were put into place to slow the spread of the virus. Even among regions that have the highest levels of violence outside a war zone, fewer people are being killed and fewer robberies are taking place.
Using the logic of supply and demand, explain what is happening in the illegal drug market used by casual users and the market used by addicts. Make sure your answer addresses the following question:
In: Economics
Compare and contrast franchise and strategic alliance.
In: Economics
2. Suppose that demanders demand 195 widgets at a
price of $21, and demand 240 widgets at a price of $20. What is the
PED over this segment of the demand curve?
a. 4.241
b. 0.832
c. 6.714
d. 0.395
3. Following up on question 2 above, which of the following best
explains what will occur should widget manufacturers decide to
decrease the price they charge for widgets?
a. Revenues will decrease because PED is elastic
b. Revenues will increase because PED is elastic
c. Revenues will not change because PED is unit elastic
d. Need more information
4. Suppose that the market price of lawn chairs is $16.01. Will
needs a lawn chair and is willing to pay $18 for a chair. ChairCo
is a manufacturer of lawn chairs. ChairCo’s cost for manufacturing
a chair is $14. Should Will and ChairCo do business, and if so how
much surplus will each enjoy?
a. Yes, Will may realize $1.99 of consumer surplus and ChairCo will
realize $2.01 of producer surplus
b. No, the price is too high
c. No, ChairCo’s profits will decline if it sells the chair to
Will
d. Yes, Will may realize $18 of consumer surplus and ChairCo will
realize $14 of producer surplus
5. True or false. Economists consider market equilibrium efficient
because at equilibrium Consumer Surplus is maximized whereas
Producer Surplus is not.
a. True
b. False
In: Economics