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Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid an increase in inflation and bring the economy to full employment as rapidly as possible.
Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals? What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates? Provide justification and examples to support your conclusions.
What is the equilibrium interest rate
Twenty years ago, Dmitri consumed bread which cost him 10 kopecks a loaf
Assume the elasticity of demand for gasoline is -0.3 and start with the current price of gasoline of about $3.00 per gallon. How much would we need to increase the price in order to cut gasoline use in half?
Presume that in the absence of trade, the U.S. price for bicycles was higher than the world price for bicycles. Would allow international trade, mean that the U.S. would import or export bicycles? Who in the U.S. would benefit and who would lose with..
1) Governments are often justified, from an economic perspective, as being able to correct market failures. Discuss what might cause market failures and whether or not each of the factors underlying market failure might also influence the abili..
The Demand schedule (or curve) specifies the relationship between prices and quantity demanded (holding constant the influence of all other factors) Take an example of one grocery item that you frequently buy from the grocery store and show how any c..
Analyze the effects of a reduction in the nominal money stock on the price level, on output, and on the real money stock when the aggregate supply curve is positively sloped and wages adjust slowly over time
IS THE SAVINGS INTEREST RATE OF INTERNET- ONLY BANKS HIGHER OR LOWER THAN THE RATE OF BANKS IN WHICH YOUR DEPOSITS(OR ANY LOCAL BANKS)?
The "net exports effect" is the impact on a country's total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the economic variables change during an economic exp..
Calls for more transparency in corporate giving programs have again raised the question of the role of business in society. Summarize the reasons for more transparency and the reasons against it.
an experiment ws designed to estimate the mean difference in weight gain for pigs fed ration a as compared with those
A consumption good
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