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Suppose the economy is initially in long-run equilibrium and the U.S. stock market has a prolonged decrease in shareholder value. Use the AD–AS model to predict short-run changes to real GDP and the aggregate price level. Using the AD–AS model explain how the economy will adjust in the long run. Should the government undertake any proactive fiscal or monetary policy in this situation? Explain your reasoning
Senator Snodgrass says, “You economists say the economy is recovering from the recession but corporations are sitting on piles of cash and the unemployment rate is not declining. If the economy is really getting better, why aren’t more people getting..
q. a show how to own equilibrium in a robinson crusoe model.b what is the relationship between the marginal rate of
Suppose that the authorities had effectively prohibited price-gouging and somehow managed to ensure that their action had no effect on the quantity of ice in the area. What would have been the effect on social welfare?
You are working at an investment firm that has many investments in Lithuania. You have been asked to do a simple simulation showing the potential effects of Lithuania building a high-speed rail network, and what will happen if there is worldwide pres..
Prove the Heckscher-Ohlin theorem. Assume two different sets of factors abundances for two countries and derive the resulting free trade triangle. Use the combination of words and graphs for the answer.
Barb age 25, files as a single taxpayer. She is employed at a monthly salary of $2,150. She claims no dependents. Her employer withheld $1,600 from her wages for income taxes for 12 months' of work. Compute of Barb’s income tax due to or from the IRS..
A gardener can use one of the three brands of fertilizers during the next growing season. The following decision table shows the expected gross income per acre for each fertilizer brand and weather condition for the growing season. The chance of a dr..
In 2016, a nation's population was 10 million, its real GDP was $1.21 billion, and its GDP deflator had a value of 121. By 2017, its population had increased to 12 million, its real GDP had risen to $1.5 billion, and its GDP deflator had a value of 1..
q1. individual has a utility function described by the equation u2xv. the price of x is 32 every item whereas the price
Specific areas of health care that you think may be worse off than others 2. Special population, communities or geographic areas that may be worse off compared to others. 3. What about the uninsured and the under insured, do you think that they deser..
Identify the various taxes governments utilize to fund the public sector and the impact of those taxes on both the producer and the consumer
llustrate what happens to the money supply. Elucidate how would this change the incentive structure facing depository institutions.
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