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1. Using the IS-LM model and assuming the central bank conducts monetary policy by directly setting the interest rate for liquid funds in short-term money market, explain the effect on the equilibrium level of aggregate income and the interest rate of the following:
(A) an expansionary fiscal policy;
(B) a restrictive monetary policy.
2. Explain how the equilibrium level of output and employment is determined in the Keynesian income-expenditure model (or multiplier model). Then explain how the model overcomes objections to a fiscal policy of a deficit-financed expansion in government spending to reduce any labour unemployment on the grounds of ‘crowding out'.
Malaria is a contagious disease spread by mosquitoes. Mosquitoes bite an infected person and pass the disease along by biting an uninfected person. In developing nations, the spread of malaria can be diminished if people sleep underneath mosquito net..
Technological innovations will cause:
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Describe "Cap and Trade" as it relates to reducing a country's greenhouse gas emissions, in at least 3 content-rich sentences.
Three alternatives have the following cost and annual benefit data associated with them: Data Alt. 1 Alt. 2 Alt .3 Useful Life, Years 10 10 10 First Cost $1,325,000 $1,980,000 $1,650,000 Annual Benefit 265,000 589,000 435,000 Annual M&O Costs 95,000 ..
Consider a market with demand function D(p) = 1000 ? 10p and aggregate supply function S(p) = ? 200 + 20p if p ? 10 [and S(p) = 0 otherwise]. Compute the competitive equilibrium price and quantity, as well as the equilibrium value of consumer surplus..
demand for its tennis balls by using the subsequent linear specification
Which of the following is not one of the long-run consequences of large sustained budget deficits?
During recessions the unemployment rate in our economy is usually quite high. Why is this difficult to explain using the Classical Model? How coulf the Keynesian Model explain it?
Explain briefly why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation.
Which of the following is true about a content chunk on a web page?
Some economists argue that the Social Security retirement program reduces fertility. That is, couples have fewer children than they would have if there was no Social Security program, all other things equal. Why might a risk averse person want to hav..
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