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1 Carefully describe and show graphically how each of following changes would effect the shape of the IS curve:a) The MPC becomes bigger.b) Investment becomes more sensitive to changes in the real interest rate.
2 In the State of the union address in January 2002, President Bush announced that he would ask Congress to approve substantial increases in defense spending to counter terrorism and significant reductions in taxes. Show:a) The short-run effects of his policy on aggregate Expenditure curve and the equilibrium level of GDP.b) What the effects would be on IS/LM curves.
Explain how specifically does this information affect your desire to sign a two-year contract with Toy Yachts R Us.
Limit your reaction to stratigies which can work and reasons for their success.
If the airline industry was operating under other market structures, explain how would equilibrium price and equilibrium quantity differ
Illustrate what happens to the demand curve and the supply curve when any of these determinants change.
Disclose what the book suggests once the short-term rate is much cheaper than the long-term in interest rate. Substantiate whether or not that is a normal occurrence or a cause for alarm.
Illustrate what are the pros and cons of performing an engineering economic analysis
How does the free rider problem explain why telephone companies are usually successful in getting permission to raise their rates?
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
Starting with estimated demand function for Chevrolets given Problem 2, suppose that the average value of the independent variables changes to n=225 million,
Over what range of labor input is marginal product minute than average product. Illustrate what is happenning to average product as employment increases over this range.
explain why do companies grant discounts to senior citizens and students
Discribe in detail ONE factor of how government involvement in the marketplace can impact or not impact the economy.
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