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Please answer each of the questions below in short-answer format. Write your responses in complete sentences. Your answers to each question should include 2-3 paragraphs (125-250 words).
1. What shape did the short-run aggregate supply curve have during the 1930s, according to Keynes? Explain.
2. What is the multiplier? How is it calculated? Why is the multiplier related only to consumption spending?
3. What are the macroeconomic consequences of a budget deficit when the economy is operating at full employment? Be sure to discuss the effects in the short run and long run.
4. Suppose that the Fed purchases $1 million in bonds in the open market. Explain how the money supply can increase by more than $1 million.
5. What happens to the price of bonds when the Fed sells bonds? What happens to the interest rate? What happens to the money supply?
How might (a) U.S. pharmaceutical companies and (b) U.S. consumers benefit from the rise of the Indian pharmaceutical industry and who might have lost out as a result of the recent rise of the Indian pharmaceutical industry?
Explain in briefly about two paragraphs the supply and demand analysis and the impact of government regulations at McDonalds.
b) What is the current long-run equilibrium price level c) If the economy grows sufficiently at $2 trillion, real GDP remains forthcoming in the long run, and the aggregate demand remains unchanged, what will be the new long-run equili..
Illustrate what value for r is optimal for the seller, and what then is the seller's expected profit.
Which policy – the tax or the subsidy – would cause less pollution to be discharged into the river? Explain.
Because the public can see whether a central bank hits its monetary targets almost immediately, whereas it takes time before the public can see whether an inflation target is achieved
identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation. In each instance, would equilibrium market price increas..
The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 2010; the 2000 deflator was 24 and 51 in 2010. What is the real gain?
Describe how the Reserve Bank of Australia uses open market operations to change short- term and long- term interest rates.
illustrate what it implies for the relationship between labour supply and productivity growth.
Explain and illustrate using the graph of the labour market and the production function the effect of decrease in labour productivity on potential GDP, the quantity of labour, and the real wage rate.
If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverseselection problem.
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