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For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.
(Hint: 2 are increases, 2 are decreases)
1. The United States government decides to increase the federal tax rate by 4% for all earners.
2. The Federal Reserve, the agency charged with regulating banking and monetary policy in the United States, decides to increase the amount of money available in the economy.
3. The newest release of the Consumer Confidence Index shows a steady increase in consumer confidence about the economy.
4. A manufacturing boom during the late 1990s has created an oversupply of tractors, a necessary implement in agricultural production.
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Explain the key features of each of the the three generations of currency crisis models. Which of the three models best describes each of the financial crises discussed in this chapter? (Book-international finance and open-economy Macro economics by ..
Upon his employment at the age of 22, Robert began to make a series of equal year –end deposits of $1100 to his retirement fund. After working for 5 years, he is now able to increase his saving. He plans to increase his annual deposits to $2200, star..
Explain the long-run effect of an increase in nominal money supply on the amount of real money balances available in the economy.
What are some econometrics texts that you would recommend for me? I learned some intro econometrics in a course which taught from Studenmund but was extremely bored.
Determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
Illustrate what conclusions can you draw about the similarities and differences between the EU and globalization.
The Mortensen-Pissarides (MP) framework of search labor is the thing in analyzing (equilibrium) unemployment over the business cycle. Shimer showed that the lack of hires is the big margin that affects the volatility of labor. Since then people tried..
The HHI for automobiles is 2,350, for sporting goods is 161, for batteries is 2,883, and for jewelry is 81. Which of these markets is an example of monopolistic competition?
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