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Question: Analyzing macroeconomic events with the IS curve (I): Consider the following changes in the macroeconomy. Show how to think about them using the IS curve, and explain how and why GDP is affected in the short run.
(a) The Federal Reserve undertakes policy actions that have the effect of lowering the real interest rate below the marginal product of capital. (We will learn how this can occur in Chapter 12.)
(b) Consumers become pessimistic about the state of the economy and future productivity growth.
(c) Improvements in information technology increase productivity and therefore increase the marginal product of capital.
You must write a short report/review (20 pages, more or less) on your selected country and explain its relevant and meaningful macroeconomic aspects.
Determine which of following independent projects should be selected for investment if $325,000 is available and the MARR is 10 percent per year
If Joe's income is $5,040 a month, and the price of goods X1 and X2 are $45 and $5 respectively, derive the following: A) The quantity of X1 and X2 that maximize Joe's utility B) The maximum level of utility Joe receives.
Explain the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is longterm growth possible?
Now, suppose that initially z=2 and the economy is in the steady state you calculated in part a. . Then suppose that z falls to 1.8 permanently. What is the new steady state? Determine capital per worker znd output per worker in each of the first ..
Then the image of a company goes up as graduate students use theorganizations products." Does such action square with a company's objective of profit maximization
What are the limits to our long-term economic growth in the US? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
How does a generic drug differ from its brand name, previously patented equivalent Explain why the price of a brand name drug typically declines when an equivalent generic drug becomes available Explain how that drop in price affects allocative ..
Select an organization that has both U.S. and international presences. Write a 750- to 1,000-word paper in which you answer address the following:
The employees of Abs “R” Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company.
Which bank shows a larger change in bank capital? Does either bank remain solvent? Define net exports and net capital outflow. How and why they are related.
Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Calculate the equilibrium level of income or real GDP for this economy
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