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1. Explain what effect a contractionary fiscal policy would have on the price level and real GDP starting from full employment equilibrium.
2. What are automatic stabilizers and how do they affect the economy? Which is the most important?
Suppose that all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
What is the amount of loans from rest of the world? What is the current account balance? What is capital account balance?
If the price of manufactured goods rises to $6 bushel (a rise of 50%), the parity price of corn as well rises by 50% - to $4.50 in this hypothetical example.
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
Vulnerability Analysis
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