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Suppose in an economy, the government increases spending dramatically. On a graph showing inflation(scale: 0-12%) at 8% and real GDP growth rate at 8%(0-12%), what would be the short-run impact of government spending on the economy?
Pine Village needs some additional recreation fields. Construction will cost $225,000 and annual O&M expenses are $85,000. The city council estimates that the value of added youth leagues is about $190,000.
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period What would happen to autonomous consumption if real wealth increased and expectations of the future became more optimistic
Find the change in consumer surplus, producer surplus and total surplus when Vanland decides to open their economy to trade.
suppose a business experiences a sudden increase in its fixed costs. for example suppose property taxes increase
Is the increase in aggregate demand sustainable or does it only create an immediate impact in consumer spending Should the private sector investment follow suit with such hefty government expenditure
The one-year real rate of interest is currently estimated to be 3 percent. The current annual rate of inflation is 2 percent, and market forecasts expect the annual rate of inflation to be 5 percent. Approximately, what is the current one-year nom..
Analyzing many indicators of the macroeconomic situations in an economy, which includes interest rate, income, CPI, inventory levels, wage, consumer confidence and unemployment.
Suppose that at a price of $400, 300 tickets are demanded to fly from Ithaca to Los Angeles. Now the price rises to $600, and 280 tickets are demanded. Assuming the demand for tickets is linear, find the price elasticities at the quantity-price pair ..
What is the mechanism by which the central bank announcing an inflation target translates into an actual inflation rate and how would your answer to q1 change if households had rational expectations
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..
Describe how global competition impacts my organization. Should the Starbucks industry reduce production or shutdown their operations.
How the Unemployment Rate Affects the U.S. Economy and how the Unemployment Rate Affects
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