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1. What is the expenditure multiplier-explain this briefly? What does it multiply?
2. (a) When an economy is in equilibrium what the size of unplanned inventories is?
(b) Also when an economy is in equilibrium what the relationship between savings and investment is?
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Calculate the expected level of demand in a typical market. Indicate the range within which actual demand is expected to fall with 95% confidence.
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
Additionally, several other configurations were also estimated. The results are shown on the following pages. Based on this data, answer the following questions. Comment on the significance of time trend and seasonality.
Select any low income country (or countries) on which you can find data on the following (a web search should yield you the required information)
Describe the effects of monetary policies on the economy's production and employment.
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
Describe (with appropriate figure) short run and the long run impact of immigration on native labour market when the immigrants and natives are complements.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
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