What was one of the major reasons why the United States was slower to recover from the 2008–2009 recession than Canada?

3. When a central bank sets a target for the interest rate, what does it commit itself to?

4. According to supply-side theories, what happens if the government cuts the tax rate?

5. Which statement is consistent with the Keynesian theory?

6. Which statement do opponents of active stabilization policy believe?

7. During recessions, how do automatic stabilizers change government deficit and taxes?

8. If the short-run Phillips curve were stable, what would be unusual?

9. According to Friedman and Phelps, no matter what a central bank does to the money supply, what will happen in the long run?

*Excel formulas needed* A Canadian firm is evaluating a project in the United States. This project involves the establishment of a lumber mill in Wisconsin to process Canadian timber. The factory expects to service clients in the construction industry. All cash flow figures are in thousands. Initial Investment. The initial investment is CAD 60,000. The project is over a period of three years. This investment will be depreciated straight line to zero. Operating Results. The firm expects two likely scenarios for the first year of operations. Under the favorable scenario (probability of 40%), the firm expects to produce and sell 2,500 units of a product. Under the unfavorable scenario (probability of 60%), it expects to produce and sell only 1,200 units. The selling price is expected to be CAD 75; the variable expense is expected to be CAD 25, and fixed costs excluding depreciation are expected to be CAD 21,000. Additional Investment. If the firm encounters the favorable scenario during year 1, it could make an investment of CAD 35,000 to enable it to produce and sell a total of 5000 units (double the units) in the second and third years. The cost parameters remain unchanged with the exception of depreciation. This secondary investment will be depreciated equally in years 2 and 3. If the firm chooses not to make the investment in year 1, the results of year 1 will be repeated during years 2 and 3. Discount Rate and Miscellaneous. Assume a discount rate of 11.50 percent and zero taxes.

a. Estimate the NPV of the project.

b. Estimate the NPV of the option to expand.

EXCEL FORMULAS only please. It will be incorrect if not run through Excel.

Thanks in advanced!

In an open​ economy, if the United States government were to purchase computer​ paper; according to the crowding out​ effect,

A.

the​ government's purchase of computer paper means they can not purchase new telephone systems.

B.

there would be less paper available for consumers to use resulting in either a decrease in paper exports or an increase in paper imports.

C.

the government restricts the sale of all paper that is not bought directly from the government.

D.

there will be no impact on consumer spending.

The mean cost of domestic airfares in the United States rose to an all-time high of $380 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $545 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $255 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $320 and $490 (to 4 decimals)?

d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)

In the United States some critics of the World Trade Organization say that it has failed to protect US interests. Others disagree. Given that high technology products and agricultural products are important export items for the US, which WTO agreements could have been used to protect US interests in these areas, and in what way?

Suppose the United States economy is represented by the following equations:

Z = C + I + G            C = 100 +0.5Y_D                     T = 200                     I = 30

Y_D = Y - T                 G = 100

Suppose the Okun's law is given by:

u_t - u_t-1 = -0.4(g_yt - 3%)

a-) What is the output growth needed to result in reducing unemployment by 1% in a year.

b-) What is the output growth needed to reduce unemployment by 2% over the next 4 years.

c-) What is your interpretation of the 3% in Okun's law above?

You have just been elected president of the United States, and the present Chair of the Federal Reserve Board has resigned. You need to appoint a new person to this position, as well as a person to chair your Council of Economic Advisers. Using your knowledge of macroeconomics, identify the personal characteristics and the views on macro theory and policy you would want your appointees to have and implement.   Remember, the economic health of the entire nation and solution to keeping the economy growing will be impacted by this decision.

As you know, during the Great Recession, the Fed proposed a number of "bail out" measures to address the “great recession”. In the second part of your paper, indicate why or why not you would recommend that your new appointee use similar measures if this situation arises again. Should the Fed have a bond-buying program? Identify any new policies that you would like your candidate to follow.

CASE 2. ELASTICITY

In the United States, taxes are imposed on cigarettes at the state level. As a result, there are large differences among states. As of July 1, 2010, three states had cigarette taxes in excess of $3.00 per pack: Rhode Island, Connecticut, and Washington. Seven more had rates between $2.00 and $3.00 (including the District of Columbia). Missouri had the lowest rate among the 50 states at $0.17 a pack. The following article describes a proposal to raise taxes by $1.00 per pack in the state of Washington. We would expect an increase in the tax on cigarettes to increase their price to consumers. An interesting question from the point of view of health and tax revenue is how much a price increase lowers demand. One of the commentators in the article claims that increasing cigarette prices by 10 percent reduces youth smokers by 6–7 percent; this is an implied demand elasticity of –0.6 (6%/10%). How do you think this compares to what we would expect from adult smokers? Many people would argue that because more young people are new smokers and because they have less money than adults, their demand for cigarettes would be more elastic. On the other hand, if peer pressure favors smoking, this could lower demand elasticity for youths. One problem that states face as they increase their cigarette taxes is that people will seek cigarette substitutes from cheaper areas. In Washington, the state pressured Indian tribes to raise the tribal tax rate on cigarettes to the overall state level. By making these substitutes to state-taxed cigarettes more expensive, the loss of customers in response to the state tax increase would be less.

Question: Analyze the given case and find that who Are the Elastic Smokers? Provide justification to you answer.

FoxMeyer was the fifth largest drug wholesaler in the United States (1995) with annual sales of about 5 billion US$ and daily shipments of over 500,000 items. In order to take advantages of new technology, FoxMeyer started a 100 Million dollar project to implement SAP’s R/3 ERP system in 1993. But the implementation was a disaster for FoxMeyer. Four years later, the pharmaceutical giant filed for bankruptcy. Also, it sued SAP and Anderson Consulting, claiming them to be responsible for the failure of the ERP system.

1. Please identify the process component of IS in this case. Are there any problems with the process component of the ERP problem? Please explain.

Generally speaking, if you talk about how the ERP system was implemented and the problem with it, you will get 0 on this question.

2. ) Please identify the structural component of IS in this case. Are there any problems with the structure component of the ERP problem? Please explain.

Explain the why, Why did these things happen?