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In 200 word answers please explain the following economic questions
1. Explain how open market operations affect the money supply, interest rates, investment and GDP.
2. If output is above/below full employment, explain how and why an increase/decrease in wages and prices will bring the economy back to full employment.
3. “Fiscal and monetary policy are like matches: powerful tools, but not to be given to children or arsonists.” Explain.
Consider a household seeking to allocate disposable income over two periods: current period and a future period. How does the equilibrium r vary with an exogenous increase in y'? Is this intuitive? you should be able to make an argument as to whether..
Consider the current economic conditions, including inflation and economic growth. Do you think the Fed should increase interest rates, reduce interest rates, or leave interest rates at their present levels? Offer some logic to support your answer
Fully explain your answer in a way that shows your understanding of monopolies. Your paper should be two to three double-spaced pages and formatted according to APA style as outlined in the Ashford Writing Center.
Find out the real rate of interest earned by Albert in each of the three years and his total real return over the three-year period. Suppose that interest earnings are reinvested each year and themselves earn interest.
q1. assume the two rival office supply companies office depot and staples both adopt cost matching policies. if
What information would a government needs to increase the probability that its industrial policy would promote long-term self-generated economic growth.
Suppose the economy is initially in equilibrium at an output level of 100 and price level of 100. The fed then manages to shift aggregate demand rightward by 20.
In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes.
AAPL current trades at around 100. You think the price at the end of the year will follow a uniform distribution centered at the current price, with a range of 40 points in either direction by the end of the year. You want to compare your assumption ..
A monopolist serving two consumers groups with demand curves PS = 12−QS and PW = 10−QW faces a constant marginal and average variable cost of $2 and considers a variety of two-part tariffs. The monopolist faces no fixed costs. Note that this pricing..
Suppose the government wants to achieve a level of Y=2,000. What level of T must be set to achieve the goal? Where C=200+0.5(Y-T), I=800, and G=300
Using the IS-LM model derive graphically derive the aggregate demand function. Fully explain each step of your derivations.
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