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1. The federal budget for national defense increased substantially to pay for the Iraq and Afghanistan wars. How would GDP in the United States have been affected if this higher defense spending led to
a. larger budget deficits?
b. less spending elsewhere in the budget, so that total government purchases remained the same?
2. Explain why G has the same multiplier as I, but taxes have a different multiplier.
Illustrate what interest it should be used in project analysis calculations.
Illustrate what are the two main challenges of the international trading system? How have these concerns been negotiated among trading partners.
Determine which of the following statements regarding Gross Domestic Product is not true?
Describe the key components in the structure of the Federal Reserve and how they are linked together. What role does the Chairman of the Federal Reserve play within this structure Of the tools that the Fed controls, pick one tool.
At some universities and colleges, economics professors earn hugh salaries than professors in some other fields.
Where does cross-price elasticity information is more important.
Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.
GDP growth is approximately 1.5 percent and has been at that level for two years. Inflation, as measured by both the CPI and GDP deflator has been at approximately 1-2 percent for the last two years.
Suppose that you are the top marketing manager for the Pepsi-Cola Co. You are engaged in an intense battle for market share in domestic beverage market with Coca-Cola Co.
Calculate the nominal GDP in 2005 and 2006 Tropic Republic and calculate the GDP in 2006 using the method of the base year prices.
Illustrate what are the pros and cons of a company that competes in a global environment. How do you think this has affected the U. S. economy and the global economy.
Are they required to ensure economic growth and a prosperous country.
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