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Real consumption expenditures in the economy is $600, investment expenditure is $100, government expenditures of goods and services is $150, exports is $60, imports is $80, labor force is 40, unemployment rate is 3 percent, money multiplier is 8.3, real interest rate is 3.5 percent. Calculate real GDP. [Hint: some of the data provided above are not needed to answer the question.]
Assuming potatoes and beans are substitutes, an increase in the cost of production for potatoes.
Let’s say that there are many non-traded goods relative to traded goods. You are comparing the income of a rich country to the income of a poor country. For the poor country, do you expect PPP-adjusted income to be higher or lower than income calcula..
Explain whether each of the following is a (1) discretionary fiscal policy, (2) an automatic stabilizer, or (3) not a fiscal policy. Government spending on infrastructure, such as highways and bridges. Treasury Department’s sales or purchases of gove..
Chris spends $300 per year to buy two services, Hair Coloring (HC) and Pedicure (PC). Suppose HC costs $50 per visit and PC costs $30 per visit. Write and Draw his budget constraint. HC PC. Suppose also his utility function is given by the equation U..
Analyze the economic impact of major social problems and issues such as poverty, discrimination, crime, income distribution, the role of government, and other major issues.
In a competitive market the current price is $5. The typical firm in the market has ATC = $5.50 and AVC = $4.50.
Milton Friedman would have liked the Fed to follow a monetary rule where the A.interest rate is increased every year by a percentage rate equal to the long-run growth rate of real GDP B.money supply is increased every year by a percentage rate equal ..
During the third quarter of 1997, Japanese GDP was falling at an annual rate of over 11 percent. Many blamed the big increase in Japan's taxes in the spring of 1997, which was designed to balance the budget. Explain how an increase in taxes with the ..
Monetary policy affects employment
Illustrate what is M1 in Iron mania. Illustrate what is M2 in iron mania.
Indicate two ways in which the framers of the United States Constitution were directly influenced by the thought of John Locke. Indicate one way in which they diverted from, expanded upon, rejected, or otherwise revised Locke's thinking.
Each employer faces competitive weekly wages of $2,000 for blacks and $2,700 for whites. Suppose employers undervalue the efforts/skills of blacks in the production process. In particular, every firm is associated with a discrimination coefficient d,..
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