Suppose Congress decides to increase government spending and taxes by equal amounts. Use the IS-LM AD-SRAS-LRAS model to illustrate graphically the short run impact of the increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment in short run. Explain clearly which curve would shift and why. What will be the long run impact of this increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment.
Show the appropriate movement of curves both for the short run and the long run. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the short run equilibrium values and vi. The long run equilibrium values.

How can the Fed keep the economy from falling into a recession/boom due to the increase in government spending and taxes? Use a second IS-LM-SRAS-LRAS model to illustrate graphically the impact of both fiscal policy of increase in government spending and taxes and the monetary policy which prevents output from falling/rising. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the terminal equilibrium values.

a) Identify the most important source(s) of market power in the following markets and briefly explain your answers:

i. Small town bars with liquor licenses

ii. Apple iPad

iii. Electronic commerce (Amazon)

iv. Brand-name prescription drugs

v. Netflix

b) Calculate the Lerner Index for the following profit maximizing firms:

i. Netflix: price = 10, marginal cost = 4

ii. Shell gasoline: elasticity = 0.6

c) Provide an example cross price elasticity for the following products and briefly justify your answer:

i. The price of Apple iPhone X and the quantity of Samsung Galaxy S10

ii. The price of BP gasoline and the quantity of Ford Expedition SUV’s

iii. The price of Starbuck’s latte’s and the quantity of Nike shoes

Suppose that the pharmaceutical rm Merck is deciding whether to develop a new diagnostic procedure that can detect early-stage Alzheimer's disease more accurately than existing tests. Developing this technology would require an up-front fixed cost FC > 0. If Merck develops the technology, it can screen Q patients for Alzheimer's at the variable cost VC(Q) = 20Q. Merck estimates that market demand for the procedure would be p(Q) = 80 - (1/10)Q

a. Suppose that other companies can quickly copy Merck's procedure as soon as it is developed so that the market for medical tests will become perfectly competitive. If Merck develops the procedure, what are the equilibrium price pc and quantity Qc? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

b. Now suppose that, if Merck develops the procedure, it will receive a patent that allows it to operate as a uniform-pricing monopolist. In this case, if Merck develops the procedure, how many patients will it screen (Qm), and what will it charge (pm)? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

c. Now suppose that, if Merck develops the procedure, it is legally permitted (and able) to engage in perfect price discrimination. If Merck develops the procedure, what are its optimal quantity Qppd , revenue R(Qppd ), and variable costs VC(Qppd )? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

d. Suppose that FC = 5000. Using your answers above, compute consumer surplus, producer surplus, and total surplus under each of the following policies:

i. No patent protecting Merck's innovation (as in part a).

ii. A patent letting Merck operate as a uniform-pricing monopolist (as in b).

iii. Legal permission for Merck to engage in perfect price discrimination (as in c).

(If Merck develops the procedure, make sure to subtract FC from the producer surplus.)

If we are trying to maximize total surplus, which of these policies is best? If we are instead trying to maximize consumer surplus, which policy is best?

Marking the benchmarks along your route (ie, Bretton Woods, Smithsonian, Jamaica, Plaza, and the Louvre Accords, etc), trace this evolution from its origins in the gold standard, through the fixed and the floating exchange rate systems to the managed float system we are living in today (15 pts).

Economists widely agree that Rent Control and Rent Ceilings are very unfavorable to use.

This brings us to the question, what are 5 better policies that could improve access to housing for low-income households? Please give support for each of your listed policies.

Question 2: Simultaneous quantity choice: Two firms F1 and F2 producea homogeneous product and compete on the same market. The market price isdescribed by the inverse demand curve P= 11−2Q, where Q is total industry output and P is the market price. To keep things simple, suppose that each firm can produce either 1 or 2 units (these are the only possible choices of production).Further suppose that both firms have a constant marginal cost equal to 2, so that the total cost of firm i= 1, 2 producing quantity q_i∈{1,2} is given by C(q_i) = 2q_i. Further suppose that firms’ production choices are simultaneous.

a. Since each firm can choose one of two possible output levels, there are four possible combinations of output choices: (q1,q2) = (1,1), (q1,q2) = (2,1),(q1,q2) = (1,2), and (q1,q2) = (2,2). Find the market price P under each ofthese possible output choices.

b. If the firms choose output levels (q1,q2), then firm 1 produces and sells (only) its own output q1 at the market price P determined by total output q1+q2. Firm 1’s realized profit is therefore given by π1=Pq1−2q1. Bearing in mind how(q1,q2) affect P, evaluate this profit function for each combination of output choices above.

c. Bearing in mind that the firms are symmetric (so that firm 2’s profits are themirror image of firm 1’s), represent the payoff matrix of this game.4. Find the Nash equilibria of this game.

1.Suppose that the federal government has a budget deficit and the economy is closed. Using the savings–investment spending identity, explain how this affects investment spending.

2.The market for loanable funds is in equilibrium. All else equal, the federal government has eliminated taxes on interest earned from savings. Describe how this will affect the market for loanable funds, the equilibrium interest rate, and the equilibrium quantity of loanable funds.

Why is public participation important in a community development effort?  Research some local efforts at public participation and discuss at least one effort.  What was the issue, the response from the public, and was it effective?  

The following information is relevant for an individual firm operating in a perfectly competitive market.

What will be the firm's production decision in the short-run?

• Exit

• Shutdown

• Other firms will enter into the market

• Operate

A fixed cost is a cost that:

• exists only in the long-run.

• does not vary with output.

• changes based on the number of workers.

• varies with output.

True or False:

A reason economies of scale exists is due to: Old tools and equipment can no longer be used.

• FALSE

• TRUE

Suppose you have the following information on a firm:

Assume it is their goal to maximize profit.

• Decrease output to maximize profit.

• Not enough iniformation to determine.

• They are producing the profit maximizing level of output.

• Increase output to maximize profit.

Fiscal Policy is the means by which government adjusts its spending and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy and that is defined as a policy through which a central bank influences a nation's money supply.

In my opinion I prefer a monetary policy because of its stability and fiscal relies too much on government debt. Fiscal policy decision making can also be influenced more on politics than the need of the economy.

Governments use each policy when the economy is too hot and inflation is rising:

fiscal: Governments can influence productivity levels by increasing or decreasing tax levels and public spending and usually curbs inflation. It also increases employment, can maintains a good value of money. Basically the government increases taxes to suck money out of the economy.

monetary: This is the process by which the authority on currency of a country such as a central bank controls either the cost of very short-term borrowing or money supply. They often target inflation of interest rate to create price stability and maintain trust in its currency.

Each policy used in a recession the government can increase government spending and cut taxes (or both). This can bring more jobs and the workers have more disposable income to put back into the economy.

Can I get a  reponce to this guy. Please try to wrte your agreement.

Your discussion post must be substantive. As a guideline your response to each question should be at least one paragraph. Your responses to fellow classmates must be substantive as well. Stating, “I agree” or “Good work” is cheerleading

1. What does OFAC do?
2. What is the difference between a sanction and an export control?
3. Which countries fall under our comprehensive sanctions program?
4. What is an SDN?
5. According to the OFAC – what are the elements of the new investment ban and trade embargo?
6. What are 3 red flags when dealing with a foreign buyer and explain why they would be a red flag.
7. Explain the difference between EAR99 and NLR
8. Who licenses Customs Brokers?
9. What are the responsibilities of a Customs Broker?
10. Explain the Entry Process for products coming into the US
11. What are the 3 types of consumption entries and what are the basic requirements
12. What are priority issues for the CBP?
13. What does dumping mean and why do we not allow it?
14. What are the benefits, according to the CBP, to Free Trade agreements? What are some of the things they do to enforce them?
15. According to 19 CFR – what are 3 general exceptions to marking requirements for imports? (You will need to find the appropriate regulation within 19 CFR)
16. What is a Foreign Trade Zone?

Possible answers: "few large, high barriers, identical, low barriers, many small, one large, similar, without close substitutes." Please try to match the spelling exactly so that Bb will not misgrade your answer.

Perfect competition features BLANK-1 seller(s) while pure monopoly features BLANK-2 seller(s). Perfectly competitive markets feature sellers whose products are BLANK-3 when compared to those of other sellers while monopolies feature sellers who products are BLANK-4 when compared to those of other sellers. In perfect competition there are BLANK-5 to entry while in monopoly there are BLANK-6 to entry. BLANK-1

B. Why do you suppose the Catholic Church was so outspoken against business activity and moneymaking at a time when it was the wealthiest institution on Earth? Is religion today still suspicious of moneymaking? Why, or why not?