Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider the AD/AS model built from the IS/LM. The economy was operating at full employment, but it is suddenly hit by a negative demand shock in the form of a decrease in planned investment at each level of the real interest rate.
a. Show the impact of the negative demand shock in the Keynesian cross diagram and in the IS/LM graph.
b. Show what will happen in the Keynesian cross diagram and in the IS/LM graph if the government decides to increase spending in order to contrast the negative demand shock. Assume that the increase in government spending successfully bring output back to the full employment level.
c. Compare the initial full employment equilibrium (before the negative demand shock) with the new long run equilibrium after the government policy intervention. Is the level of investment different? Is the level of consumption different?
Using the figure below, answer the following: a) What rate of output maximizes profits? b) What is MR at the rate of output? What is price? c) If output is increased beyond that point, what is the relationship of MC to MR? How will this affect total ..
q.in ua villa 1000 people live on main street that is 10 miles long. every day each of the 1000 people will buy 1 fruit
A life insurance salesperson claims the average worker in the city of Cincinnati has no more than $25,000 of personal life insurance. To test this claim, you randomly sample 100 workers in Cincinnati. You find that this sample of workers averages $26..
Consider an economy with the production function Y = L ^(1/3). calculate the equilibrium levels of real wage, labor and output. What is the equation of the aggregate demand curve for this example? What is the price level? What is the nominal wage lev..
q1. laura bought word -processing software in 2005 for50. lauras twin brother laurence buys an upgrade of the same
A market consequence of the establishment of a price floor program is that price will be:
“The Mexican arm of U.S. Internet giant America Online Inc. said on Wednesday it started a financing program to help aid in the purchase of personal computers, joining a list of companies that have launched similar programs to promote Internet use. W..
increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Elucidate do you agree with the student's reasoning.
Three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible PC operating system is extremely large and stable. Second, Microsoft's dominant market share is protected by high barrier to e..
For the past few years, Cuban baseball players have been leaving their country illegally to play professional baseball in the United States. (Ex. Yasiel Puig, Rusney Castillo, Jose Abreu). What laws in Cuba are restricting them from leaving legally? ..
Mitchell's income is $150, the price of X is $4, and the price of Y is $2. Given these prices and income, Mitchell buys 20 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 1. Given these prices a..
If he continued to work exactly as many hours as he did before the wage increase, how much more money would he have each day to spend on consumption?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd