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Suppose that in elections President Push wanted to help out Congressional candidates in his party by making the economy look strong: high GDP figures and low inflation. Suppose he increased government spending, hoping to make GDP statistics rise in the period prior to the election. He knows this can lead to higher inflation, but he hopes this policy will affect inflation statistics (CPI) mainly after the election is over.
Discuss the short-run and long run implications of the president’s fiscal policy on output, the price level and real interest rate. Use IS-LM & AS-AD graphs, where the short-run aggregate supply assumes that output is some positive function of price surprises.
How does the success of the president’s strategy depend on how flat or steep the short-run aggregate supply curve is? Thinking of our stories of aggregated supply, what are some things that determine the steepness of this curve?
A new bridge project is being evaluated at an interest rate of 7%. Reccomend an alternative based on the capitalized cost for each option below:
Assume the operations manager at the company you own prefers to put in low effort rather than high effort. In order the manager to exert high effort, his expected financial gain must be at least $60,000 higher than if he puts in low effort. How would..
Assume that you are going to start a small business of your own. Describe the business and, utilizing the concepts of this unit and the earlier units, discuss: What costs you would incur;
It has been estimated that private prisons are about 10 percent cheaper, on a every prisoner basis, than public prisons.
A piece of construction machinery costs $5000 and has an anticipated $1000 salvage value at the end of its five year depreciable life. Compute the depreciation schedule for the machine by: Straight line depreciation;
If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.
One way to help establish new technologies is to employ something called a "quality circle". What is this and how do companies use them to help implement new technologies and stay on top of changes in the work environment?
q1. if the equilibrium level of aggregate expenditure is 80 billion as well as there is a reduction in consumption of 2
Current, Greece has a debt of roughly 175% of GDP. The new government has announced it wishes to negotiate a write-off, something Eurozone leaders have so far refused. From prior knowledge and this post, I understand that governments may want to stim..
Other things equal, what effect will each of the following have on the equilibrium price level and the level of real output?
Macintyre in his account of Aristotelian virtue, states that integrity is the one trait of character that encompasses all the others. How does integrity relate to as Macintyre said, the wholeness of a human life?David Starr Jordan (1851 1931) an edu..
Describe the shape of the average total cost function and also label the minimum point on the curve.
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