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Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP). She wants to know what policy to pursue to increase RGDP by $2 trillion ($2,000 billion). The best estimate she gave you is the value of MPC = 0.8. Which of the following policies should you recommend and why? You need to show your work of estimations and explain in words.
a. Increase government expenditure (G) by $400 billion
Illustrate what wage would a monopoly union demand Explain how many workers would be employed under union contract.
If personal taxes were decreased and input productivity increase simultaneously, the equilibrium: output would rise, fall, price level would necessarily fall, or price level would necessarily rise.
How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
Inflation during the 1970s was much higher than most people had expected when the decade began. How did this affect home-owners who obtained fixed-rate mortgages during the 1960's? How did it affect the banks that lent the money?
Suppose that you desire to get a lump sum payment of 100,000 two years from now. Rounded to full dollars, how many current dollars will you have to invest today at a 10 percent interest to accomplish your goal?
determine the probability that buying the equipment will produce a return less than that of the bank and the probability that buying the equipment will produce a return more than that of the bank.
Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms..
Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations?
Illustrate what conclusions can you draw about the similarities and differences between the EU and globalization.
Elucidate is it good for the economy to have more competitive markets.
Explain why would a country (for example China) choose to keep their currency relatively pegged to the U.S. dollar.
suppose that the carnival and the circus have both come to town and are both o?ering free admission. you have 6 free
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