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1. Discretionary fiscal policy works to close a deflationary (recessionary) gap by shifting the
AD curve leftward.
AS curve leftward.
AD curve rightward.
AD curve leftward and AS curve leftward.
2. Compared to fiscal policy, monetary policy has the advantage of
being faster to implement because it cuts out the law-making time lag.
being less prone to errors in estimating potential GDP than fiscal policy.
being more accurate in forecasting future events than fiscal policy.
having a more direct impact on the economy than fiscal policy.
Two identical firms save money from polluting. A firm’s marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution concentrations. Two units of emission from firm 1 result in one unit of am..
Participate in a discussion with your classmates regarding your role in the money multiplier process. Review the “EYE on Your Life” caption titled, Money and Your Role in its Creation, on page 281 in the textbook. Discuss and describe the effect you ..
In a short run cost function, capital/unit = $30, Labor/worker = $20 and K=10, how to solve for and value of total variable cost? My solution total variable cost does not intersect Total fixed cost and Total cost curves and I do not understand why?
What output will firm choose. What will be monopolistic competitor's average fixed cost at output it chooses.
Which global marketplace entry modes would you be most and least likely to recommend to other strategists, and why? In your opinion, what are the most significant pros and cons of making global strategic alliances?
What is interested and why do we have it? Explain why taking interest rate down to zero, i.e., no interest rate, may stoke inflation, and hence, removing the purchasing power of money and ruining the economy down the road.
This section provides the opportunity to develop your course project. Conducting an internal environmental scan or organizational assessment, provides the ability to put the strategy audit together.
George bought a car for $26,500. He made a down-payment of $4,500 and financed the rest on a 5-year term with a monthly payment of $575. What is the interest rate per month for the loan? What is the nominal interest per year? What is the effective in..
World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to ex..
explain increase in quantity of defense goods when there is an increase in marginal benefit.
Suppose that the minimum required reserve ratio for banks was 1/11. Also suppose that banks held no excess reserves and that currency in circulation was unchanged. What action in the Treasury bill market would the Fed have to take to increase bank ch..
The Food and Drug Administration (FDA) just gave you the approval to sell your new patented drug which reduces the aches and pains associated with doing IO homework. You spent 10 years and $1.5 billion to market this drug under the brand name eazIO. ..
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