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If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
a. a decrease in the reserve requirement coupled with an increase in taxes
b. the sale of government securities by the Fed coupled with an increase in the level of government spending.
c. the purchase of government securities by the Fed coupled with a decrease in the level of government spending.
d. the purchase of government securities by the Fed coupled with a tax reduction
e. an increase in the reserve requirement coupled with a tax reduction
f. the purchase of government securities by the Fed coupled with a tax increase
Illustrate what is the natural rate of unemployment for this economy. Assume the economy has been in equilibrium for a while also the inflation rate is 15%.
Discuss the idea of DRG-based prospective payment mechanism for hospitals. Discuss the potential effects of DRG payment on quantity of services produced by the hospitals, composition of different types of services offered, incentives for adoption of ..
She put her savings into mutual fund that paid a nominal interest rate of 7 percent a year. CPI was 165 at beginning of year and 177 at end of year. Illustrate what was real interest rate that Sally earned.
Assume the firm is operating in a high-wage country, where capital cost is $100 per unit per day and labor cost is $80 per worker per day. For each level of output, elucidate which technology is cheapest.
Elucidate each of the following statements using supply- and- demand diagrams. a. " When a cold snap hits Florida, the price of orange juice rises in supermarkets through-out the country."
Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms.
Is the market for coffee perfectly competitive. Elucidate does the coffee market meet all six conditions of a perfectly competitive market.
Consider a perfectly competitive market where demand is given by P=84.20-2.15Q and supply is given by P=12.78+1.20Q. Calculate the equilibrium quantity and price.
What was the impact on the supply and demand of labor on one sector of the labor market? Explain the factors that affected labor demand and labor supply in the chosen historical example.
What sort of relationship would you expect to see between the price of bonds and the interest rate?
Explain carefully why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? What is the difference between shutting ..
The constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy.
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