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Assume that the current level of income in the economy is $700 billion. It is determined that in order to reduce the unemployment rate to the desired level, it will be necessary to increase the level of aggregate income to $760 billion. Assume that S = -25 + .2Yd. How much would government spending have to be increased in order to accomplish the desired outcome?
What about lowering interest rates and increasing money supply (i.e., monetary policy) If you were the chair economic advisor to the President of the United States, what would be your advice to him What does the Scripture have to say about money
What is the price elasticity of demand? Provide four reasons why the demand for medical services is likely to be inelastic with respect to its price.
Identify and describe the four sources of unemployment and the four types of unemployment. For each type of unemployment, indicate if public policy can be used to reduce the incidence of that kind of unemployment, and if so, indicate what policies..
what macroeconomic policies might you enact in response to these economic conditions? How would you expect these policy changes to impact the economy?
Explain why a monopolist will never produce a quantity at which the demand curve is inelastic - hint - if demand is inelastic and the firm raises its price, what happens to total revenue and total costs
describe the short term effect in terms of the mix of production inputs and the overall level of output in detail of
suppose that you lend 1000 to a friend and your friend pay you back 1100 the nnext year.suppose the price that year
Diagram the total product, marginal product and average product functions showing the division points between stages I, II and III of the production process. How do these stages of production relate to isoquants.
The cost of labor goes down, the profits of firms will increase, and short-run aggregate supply will shift to the right.
Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate.
How many units of labor should the firm use in order to produce 400 units of output at the least cost and the minimum cost of producing 800 units of output is what?
If the marginal propensity to consume equals 0.75, a $6,000,000 increase in government purchases will result in what increase to total output, assuming no crowding-out effect exists? A. $4,500,000 B. $6,000,000 C. $8,000,000 D. $24,000,000 E. $1,50..
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