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Describe effects of a contractionary fiscal policy where the government reduces spending. Be sure to discuss what happens to output, interest rates, consumption, investment and the government budget deficit in our model. Discuss all shifts and movements along the three graphs, IS-LM Model, Aggregate Demand Model, & the Money Supply Model.
If inflation was the most significant problem facing the economy, what would be the appropriate monetary policy response?
q.reflect on the solow growth model by means of technology given by y zfk n k12n12 its savings rate is 0.2 moreover
Long-run Macroeconomic Equilibrium and Stock Market Boom Let us assume the economy reaches its long-run macroeconomic equilibrium in 2020. When the economy is in the long run macroeconomic equilibrium, the stock market will also reach its boom. Which..
Provide examples of businesses taking advantage (profiting from) the recent drive to “go green” (environmental consulting, etc). What are the advantages and disadvantages of going green for a company? What are the differences between John Maynard Ke..
In this assignment you will apply consumer choice theory and marginal analysis to business problems. Explain how your own current household budget, tastes and preferences, and future expectations determine how much of each of these products you purch..
Find outing relate to economist's traditional focus on Illustrate what people do, rather than Illustrate what they say they will do.
If velocity ?(V) and aggregate output ?(Y) remain constant at $4 and $1,000 billion?, ?respectively, what happens to the price level ?(P) if the money supply? (M) declines from $425 billion to $350 billion?? Originally, what is the price level?
What point on the graph is most likely to result from the introduction of technological improvements in bicycle assembly, and successful publicity campaigns by the government on the virtues of bicycling to work.
A local tailor has two types of customers, private customers and department stores. The market of private customers has a demand given by Qp = 2000–100P, and the market of department stores has a demand given by Qs = 4000 − 100P. Suppose that the tai..
What is the elasticity of its demand with respect to advertising? Now suppose the theater increases the number of its ads to 250. Should the theater increase its price following this ad campaign? Explain.
Teresa likes to consume chocolate and yogurt. Her utility function is given by U(x,y) = x^0.5y^0.5 where x and y are the quantities of chocolate and yogurt she consumes. Suppose that her income is $10 and the initial prices for both of the goods is $..
Explain how this new inflationary environment would affect the demand for money according to portfolio theories of money demand.
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