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1. Show a liquidity trap equilibrium in an IS-LM diagram and an AS-AD diagram. Give an explanation for the slopes and positions of the curves in the diagram.
2. Explain whether fiscal policy and conventional monetary policy can solve the liquidity trap problem.
3. Explain why central banks have resorted to unconventional monetary policies. Describe them and explain why they may be effective in stimulating the economy.
Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
Normal 0 false false false EN-US X-NONE X-NONE The smoothing factor chosen..
identify economic factors that affect the real gdp the unemployment rate the inflation rate and a key interest rate.
The owner of Michaels Prints a firm that prints business cards tell you that as a result of an increase in the wage rate of printer operators he has reduced the amount of output he produces and the amount of capital he uses how should you respond
Why does a business need to understand elasticity of demand and calculate the elasticity of demand between prices $6 to $8
Normal 0 false false false EN-US X-NONE X-NONE How are labor terms and con..
The government make a decision to finance the increased expenditures need to close the GDP gap, by rising taxes. Determine the necessary changes in government spending and taxes to close the GDP gap?
Apply the concept of price elasticity to a purchasing decision you made within the past year. Give an example on how the elasticity of demand helped you determine whether a product or service was a luxury to have or a necessity.
Discover the government budget deficit or surplus. Compute the Equilibrium level (Y) Compute the equilibrium level of disposable Income (Yd). Compute the level of Consumption (C) in equilibrium.
why do income inequalities exist? how are income inequalities measured? how have income inequalities changed from 1980
Consider an industry with two firms producing an identical product. Each firm has a marginal cost of 10 and a fixed cost of 20. Market (inverse) demand for the product is given by: What is the Nash EQLM of the matrix in (b)? What is each firm’s strat..
if the u.s dollar were to appreciate substantially what steps could a domestic manufacture like cummins engine co. of
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