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Explain how the US government managed to accumulate a debt of over 14 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
What implicit weight is placed on the inflation target under this rule? Discuss. Draw an IS-MP diagram but instead of the usual MP curve, graph the monetary policy rule.
Suppose OPEC breaks apart and oil prices fall substantially. Initially, which curve shifts in the aggregate supply/aggregate demand modell In what direction does it shift? What happens to the price level and real ouput (GDP).
If the government steps in to regulate a market, setting a price floor above the free market equilibrium price, will demand increase or decrease compared to the free marker equilibrium? Can you name any industries where the government sets price floo..
Suppose in the banking system as a whole, demand deposits are equal to $80,000,000 and reserves are equal to $17,000,000 with a legal reserve ratio of 10%. If the Fed doubles the required ratio, by how much will the money-creating potential.
Suppose the government institutes a new sales tax on shoes, which are produced by a competitive constant-cost industry. a. Does the price of shoes change by more in the short run or in the long run b. Does the industry-wide quantity change by more in..
applied macro economicsquestion 1comment on the following statement the key feature of the production function is that
What is the hypothesized elasticity of demand for one product/service that is produced by the company (or a product/company you are familiar with)?
Can you tell whether this firm is in a competitive industry and if the industry is in a long-run equilibrium?
Benefit-cost ratio analysis and an 8% MARR, determine which alternative, if any, should be selected.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks. Assume that the relationship between the output ratio and the unemployment rate, U is given by the equation U = 6.0 - 0.5 (output ..
As of 2011, 38 percent of black children under the age of 18 were living with both parents, while the corresponding figure for non-Hispanic white children was 77 percent. In addition, the existence of racial residential segregation results in blac..
Why does a government place price ceilings, such as rent control, on some "essential" goods. to encourage an increase in supply of necessary items, to limit the impact of equilibrium pricing or else.
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