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Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Choose one and also show a picture of this in a AD-AS diagram.
For each of the following situations, find the consumer’s optimal bundle. Be sure to show your work. Also, for each case, draw the consumer’s budget constraint, indicate the optimal bundle on the graph, and accurately draw the indifference curve that..
Compute nominal GDP, real GDP also the GDP deflator for each year, using 20010 as the base year.
q.read through the budget speech presented by the minister of finance on 22 february 2012. explain in detail whether
q.consider a race between 2 candidates. whoever spends the most money in their campaign wins the election and gets a
Suppose that the government imposed a $1 tax each time someone used an ATM.
q.in the standard keynesian framework in open economy macroeconomics the supply is assumed to be perfectly elastic and
Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.
A firm uses labor and capital to produce output according to the production function q= 100KL, where L is the number of units of labor used and K is the number of machines. Suppose the price of capital is $120 per day and the price of labor $30 per d..
When a society under allocates resources to the construction of a good or service, it indicates
Assume to John Smith gets promoted to a job to cause two changes to occur simultaneously: John earns a higher wage also safer environment
q1. p320-.04q with quantity q measured in thousands of barrels per day and price p measured in dollars per barrel. the
this question uses the general monetary model where l is no longer assumed constant and money demand is inversely
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