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An economy is operating with output $400 billion below its natural rate, and fiscal policymakers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out. The marginal propensity to consume is 4?5, and the price level is completely fixed in the short run. In what direction and by how much would government spending need to change to close the recessionary gap?
Illustrate what will be the consumer consumption of gasoline now and how much will be the amount of rebate.
Since 1990, energy use per person has either remained fairly stagnant or has increased in different nations and regions of the world. Match the nation or region with the trend in energy use per person since about 1990. Column preview China. increa..
How does the US Department of Agriculture calculate the official poverty level What government assistance programs does the Census Bureau consider when calculating household income What programs are ignored
What is the profit-maximizing price to charge a Texan for a car wash? What is the profit-maximizing price to charge a Californian for a car wash?
Suppose he chooses to drive 10 hours a day explain how many hours of leisure and how much consumption does this imply.
Would you assume this as an externality, and if you do, what would you suggest be done about it.
You are given the following information about the personal computer (PC) industry: Find the NRP and the ERP. Show all calculations and formulas.
amount of hours a week to be split between market-labor and home-labor. Assume that A can make $20 of market goods per week and $10 household goods per week; assume B can make $10 of market goods per week and $20 of household goods per week.
Illustrtyae what policies we should follow in resource allocation for health.
Ben Bernanke has said that the Federal Reserve is going to continue its latest round of Quantitative Easing until unemployment falls to 6.5%. How fast will the economy have to grow to bring unemployment down to 6.5% by this time next year? Assum..
Illustrate what is the adjustment mechanism under a flexible exchange rate regime. Illustrate and explain which curve(s) will shift during the adjustment.
Explain with the aid of a diagram what happens to the money supply, money demand, the value of money, and the price level if people demand less money at every price level.
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