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Using Keynesian model and Classical model, analyzed the effect of balanced budget (when the government increases the government expenditure and tax by the same amount not to affect the government deficit) on output (Y), interest rate (r) and price level (P).
A bank in a mediumsized Midwestern city, Company X, currently charges$1 per transaction at it's ATM's. To determine whether to increase price,
Consider that demand elasticity is defined as the percentage change in quantity divided
The present spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
When is international job an opportunity for workers. When is it a threat to workers. What are some of the major challenges confronting the international trading system.
From a macroeconomic standpoint it would be most desirable to have a decrease in personal consumption expenditures/spending (aggregate spending by the household sector) A. when a recessionary gap exists. B. when an inflationary gap exists. C. durin..
Elucidate how the market for corn would be affected if ethanol, a corn derivative was used to fuel cars in the United States.
Explain why is it that a firm in a perfectly competitive market can sell as much as it wants without a change in price occurring? As a result, what is the elasticity of demand affecting the firm then.
Suppose a four year pure discount bond with a face value of $1000, if current price is $850, calculate the annualized yield of this pure discount bond.
Find the future value one year from now of a $7,000 investment at a 3% annual compound interest rate.if the investment is made for 2 yeaars also calculate the future value.
Elucidate what happens to the price of shoes and the quantity of shoes consumed after a total ban on imports.
A representative company with long-run total cost given by TC =20+20q+5q2 operates in a competitive industry where short-run market demand and supply curves are given by QD = 1,602 - 40P and QS = - 400 + 20P.
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