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1 .Any point to the left and below the IS-curve means that :
there is excess demand for goods and services in the expenditure sectorthere is excess supply of goods and services in the expenditure sectorthe expenditure sector is in equilibrium but the money sector is notthere is excess demand in the money sectorthere is excess supply of money in the money sector
2. Assume that the price level is flexible both upward and downward and that the Fed's policy is to keep the price level from either rising or falling. If aggregate supply increases in the economy, the Fed:
will have to increase interest rates to keep the price level from falling.will have to reduce the money supply to keep the price level from rising.will have to increase the money supply to keep the price level from falling.can keep the price level stable without altering the money supply or interest rate.
3. Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a $500 increase in taxes once all the rounds of the multiplier process are complete?
An increase of $500 in taxes causes equilibrium output to decrease by 1000.An increase of $500 in taxes causes equilibrium output to decrease by 2000.An increase of $500 in taxes causes equilibrium output to increase by 2000.An increase of $500 in taxes causes equilibrium output to decrease by 400.An increase of $500 in taxes causes equilibrium output to increase by 400.
Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).
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US cigarette makers face enormous punitive damage penalties after losing a series of class action lawsuits-What action do you suppose the cigarette companies took to avoid bankruptcy?
During the 1990s, age cohort that grew the most rapidly was the 45-54 cohort, which has highest saving rate. Yet during that same period,
Describe how these technologies have changed the way accounting is performed at your organization or an organization of your choosing.
If the rate of return earned on reinvested funds is 15 percent also the industry reinvests 40 percent of earnings in the firm, what must be the discount rate.
Suppose that a less developed country known as LDC encourages direct foreign investment
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