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The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct?
a. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
b. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
c. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.
d. Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
A California grower has a 50-acre farm on which to plant strawberries also tomatoes. The farmer needs to know the number of acres of strawberries also tomatoes to plant to maximize profit.
Assume that a monopoly has the following inverse demand curve: P=80-5Q. The firm's total cost function is TC=20+10Q. At what output is the firm's total revenue maximized?
If demand is estimated to be Qd = 240 - 6P, the marginal revenue function is
Calculating savings using the goods market equilibrium. Assume a closed economy (NX=0). Suppose net taxes are $100 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. Calculate public savings, priv..
What role did the government play in creating the financial crisis? What role did Fannie Mae and Freddie Mac play in the financial crisis? Could this have been prevented? How? How the government have responded to the crisis both in monetary policies ..
Amanda and Blake have found a house, which owing to a depressed real estate market costs only $201500. They will put $22000 down and finance the remainder with a 30-year mortgage loan from Bank of America at 4.65% (compounded monthly).
q.what is the relationship between states that have stricter gun control laws and the crime rate?you will need to
Consider a bond that has a present value of $1,000. If the annual rate of interest is 7 percent, the future value of the bond after a year is
What is the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates? (Macro economics, course number AB204)
Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and requires a variable cost of $150 per lawnmower; its fixed costs are $200,000 p..
Suppose that output is $2.2, the natural rate is 4.5%, potential GDP is $2.32, inflation was 3% last year expectations arc adaptive, and the phillips curve equation is pi = pi + 0.5(Y - Y*)/Y*. What will the inflation rate be this year?
Explain how the circular flow diagram relates to the current economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products market.
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