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Consider the difference between the New Classical and Keynesian model regarding macro policy. What is the driving force creating growth in the economy in each model? Why does each one say that item creates growth? Explain. Why are the two models exclusive to each other in most part? Explain. Why do Keynesian solutions to the economic downturn not work in the New Classical model? Explain.
We now incur shocks as provided in red font. Solve for a new expression of the consumption function and aggregate expenditure curve, solve for the new equilibrium output and add this new equilibrium point to both of your diagrams (label as point B..
Suppose no increase in the price of labor, how many workers will the bakery hire.
In 1999, the Office of the Under Secretary of Defense projected that the ENR Building Cost Index (BCI) would increase from its 1999 value of 3423 to 4098 in 2012. If the actual value in 2012 was 5167, what was the difference betwee..
What happens to the interest rate if the money supply increases from 20 to 30? Illustrate your answer graphically. What happens to the interest rate if nominal income increases by 10%? If the Federal Reserve Bank wants to increase the interest rate ..
Under what circumstances would a monopolistic firm be economically more efficient than a group of small, competitive firms If there are such monopolies, what are the drawbacks and how could they be corrected
If there are internal economies of scale, why would it ever make sense for a firm to produce the same good in more than one production facility Explain why trade liberalisation has the same effect on an economy as an increase.
Critically discuss that there is no satisfying theory that explains the behavior of firms in oligopoly markets. Which theories should I include in the analysis and give some examples relevant to these theories?
Explain how if at all would your answer change if you know that ABC's technology had decreasing returns to scale. Explain.
Assume the US increases tariff on automobiles imported from Germany and other foreign nations. Determine the effect of this tariff-rate increase on
Given the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's..
Assume the government imposed a minimum price of $7 in the schedule of exercise 3. What would occur. Illustrate.
Describe the maximum and minimum amounts that can be produced
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