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If LRAS = $500 billion, RGDP = $700 billion, and MPC = .8, then what should the Fed do?
Be Specific. Also draw and label both the current situation and what would occur as the government impacted the economy through their actions.
What are the impacts in the short run of the above actions on the following:
the market interest rate-
the quantity of money demanded-
investment spending-
aggregate demand-
potential output-
the price level-
equilibrium RGDP-
Percy’s “The Loss of the Creature” provides a rather provocative way to end a semester of reading, writing and thinking about education. Write a 4-5 page essay in which you consider Percy’s ideas as they apply to a student living in a developed cultu..
Alchemy allows the other firms to sell as much as they wish at the established price and supplies the remainder of the demand itself.
The HRB Corporation is the world’s only manufacturer of air filters for Zamboni engines. Last year, HRB charged $20 per filter and sold 1 million of them, and it paid all of its production workers $10 per hour. What was the workers’ marginal product ..
Consider Bertrand competition but with differentiated products. The products are Mishka’s coffee and Temple coffee. The demand for Mishka’s coffee is given by qM =12 − 2pM + pT where pM is the own price of coffee and pT is Temple’s price of coffee. F..
What is the law of supply? Give an example of how you have observed the law of supply at work. What is the relationship of the law of supply and the supply curve?
Assuming that the marginal cost is zero to provide the rides to those in attendance, what is the best pay-per-ride price
In the following cases, explain what happens to demand or quantity demanded and how the change would be shown on a graph of the demand schedule. Assuming that tickets to an NFL game are normal goods, what is the effect of an increase in the incomes ..
Governments sometimes try to change government spending or taxes to affect real output and the price level. If the government wants to use either government spending or taxes paid by households to increase aggregate demand, how should G change and ho..
Imagine an economy with two types of goods; those that are tradable T (goods that can cross borders) and those that are not tradable NT. The technologies to produce them out of labor are T(L) = 2LT and NT(L) = 4LNT. The total amount of labor in this ..
Agile project management was originally developed to do software development. Could a traditional process be successfully used to develop a new software program? Why or why not? Could an Agile methodology be used to build a strip mall in your home to..
Jim's systolic blood pressure is normally distributed random variable with a mean of 145 mmHg and a standard deviation of 20 mmHg. If Jim's systolic blood pressure is taken at a randomly chosen moment, what is the probability that it will be between ..
Explain what is mean by exchange rate overshooting and undershooting. Explain the GG, MM, and PPP lines and equilibrium in the Dornbusch model.
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