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Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period was 2%
a. If the housing bubble busting causes the share of output of investment to fall 6% of potential GDP, what will happen to the economy?
b. If the economy was at potential before and the natural rate of unemployment is 5% what will unemployment be now?
c. What will the inflation rate be?
d. How low can the Federal Reserve lower the Real interest rate*? How much output is recovered? Is it enough to push the economy back to potential?
The people of Aquilonia deposited half of their currency into the banking system. If banks do not hold excess reserves
The type of manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job.
Illustrate on your graph and in words all important points and areas on the business cycle.
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
A country club knows that each of its customers has a demand curve for golf rounds of q = 500 – p, where q is the number of rounds bought in a year and p is the price per round of golf. Furthermore, because it is so exclusive and there are not many m..
How companies and countries are becoming specialised in certain industries to compete and expand their businesses. Compare Australia with any other two countries
Write a paper about any topic in Demographic Transition in Developing Countries.
How would you explain to either the president or the CEO that he or she is wrong?
X-Corporation produces a good (Called X) that is a normal good. Its competitor, Y-Corp makes a substitute good that it markets under name "Y." Good Y is an inferior good. How will demand for good X change if consumer incomes increase.
Is the client’s refusal to procure an audit of Internal Controls over Financial Reporting in violation of Sarbanes-Oxley? Why or why not?
A company is considering a proposed new plant that would increase productive capacity. Which of the following statements is CORRECT?
q1. what are the impacts of demand? what happens to the demand curve when each of these determinants changes?
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