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1. Draw a real expenditures curve on a graph showing a recessionary gap. Explain what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
2. Draw a real expenditures curve on a graph showing an inflationary gap. Explain what happens to real GDP when it is initially to the left of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
3. Explain with the aid of a graph why a "self-correcting" recessionary gap cannot be relied upon to bring an economy out of recession.
Illustrate what is her economic profit or economic loss. What happens to demand for labor. What are the new equilibrium wage rate and employment level.
If industries collude, Illustrate what will be monopoly cost (optimal cost P*), total output of two industries (Q= q1 + q2) and total profits of two industries.
Explain the debate on equal rights, especially as related to marriage, for gay men and lesbians continues. Would you classify this as an issue or as a problem.
Suppose the firm is operation in a high-way country, where capital cost is $100 per unit per day and labor cost is $80 per workers per day. which technology is cheapest for each level of output.
When aggregate demand shifts left along the short run aggregate supply curve, then unemployment?
Illustrate now have to lend out how much does this bank if it decides to hold only required reserves.
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
Calculate equilibrium level of income in goods market if i=10 also calculate equilibrium level of income in money market if i=10.
It is a common belief that social security benefits will run out in the near future. How can we save social security?
assignment is to be a minimum of five pages long and in APA format. A good variety of objective, high quality, present sources need to be used.
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
Illustrate what is the minimum price necessary for the company to supply one thousand cups.
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