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1. What factors (determinants) cause the AD curve to shift?
2. What factor(determinants) cause th AS curve to shift?
3. Briefy expain and show graphically how fascil policy works to close a recessionary and an inflationary gap.
4. Explain and show graphically how the self-correcting(self-djusting) mechanism works in a recessionary and in an infationary gap. Does the ecoomy have a self-correcting mechanism? Explain
5. Explain and show graphically how "supply-side" economic is supposed to work to close a recessionary gap. What are the short-falls of supply-side stategies?
6.Explain the difference between the Keynesian and classical views. When is fiscal policy efective. What did Keynes mean by " In the long run we are all dead?
How would your advice to the company be affected by the release of the 2020 Pharmaceutical Development Program?
Describe why the understatement of inventory by 66,000 at then end of 2004 results in an understatement of equity by same amount in that year.
What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
Dyna-Rubber, man manufactures a high-performance tire called Sport 70. Fixed development cost for current year is $600,000.
Identify three methods for solving rational expectations models and using your chosen method, find the rational expectations solution for prices (p) and output (y).
Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25, 000 if the boat is a total loss. If the boat is not a total loss but the damage is more than $10,000, the policy pa..
If the required reserve ratio is 10 percent, banks keep 2 percent excess reserves, and the public keeps a 10% cash to deposit ratio, determine the money multiplier?
Shannon bakes cookies and Justin grows vegetables. In which of the following cases is it impossible for both Shannon and Justin to benefit from trade?
Early Classical economists found the subsiquent diamond/water paradox perplexing.
explain whether the following scenarios shift the aggregate supply or aggregate demand curves. Illustrate what happens by using a graph. Finally, state in what direction the price level and the quantity move. a.) Households decide to save a l..
Since inventories are not a large component of GDP, how can they affect GDP so sharply explain how will the replenishment cycle affect GDP in the near future?
In effort to decrease excess end of the model year inventory, Oaktown Ford offered a 1 percent discount off the average price of 4WD Escape gas-electric hybrid SUV's sold during the month of August.
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