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Draw the initial long run equilibrium using AD-AS diagram. Now suppose a positive supply shock such as a fall in oil price happens.
a. Show the effect of this positive shock in the output market as well as on the short run and long run Phillips Curve diagram. Label the points in both diagrams clearly. If you label point A on one diagram, show point A on the other to demonstrate the situation of unemployment and inflation on the Phillips curve diagram too.
b. Show (on the diagrams you drew above) how the economy will adjust in the long run if Bank of Canada uses expansionary monetary policy (increasing money supply). What happens to inflation and unemployment?
c. Show what happens if the BoC uses contractionary monetary policy (decreasing money supply). What happens to inflation and unemployment? Draw a new set of diagrams to show this effect. Clearly show points A, B and C on both the diagrams.
What is the volume of the balloon indoors at a temperature of 25°C? Show your calculation.
You may also conduct an Internet search and select another dead economist, with instructor approval. Write a 2- to 3-page paper (not counting the cover page or the references page) in which you address the following:
Every year there are new, and sometimes unexpected lawsuits against US corporations. Choose a case for study at the web site http://www.usdoj.gov/atr/cases.html You will find many, many antitrust lawsuits listed alphabetically.
If the organization wishes to restore sales to 10,000 per month determine the price they need to charge.
Assume that the Current Account Balance is initially positive for one country. Assume that a permanent positive shock to production affects the country which initially had a positive current account balance.
Consider two countries with fixed exchange rate regimes. In one country, government authorities exert fiscal dominance. In the other, they do not.
Determine the effects of a temporary increase in the quantity of government purchases on current equilibrium output, employment, the real wage, the real interest rate, the nominal interest rate, and the price level.
Analyzing macroeconomic events with the IS curve (II): Consider the following changes in the macroeconomy. Show how to think about them using the IS curve.
What is the combined (total) demand schedule for Belgian cocoa beans that European and USA consumers buy?
Realizing that the major function of benefit is to allocate resources according to consumer preferences, why are some groups in United States extremely critical of companies that earn increasing benefits
In view of the weak economy of the last several years, explain which of the four components of GDP had, or is having, the greatest positive impact in our economy.
Do corporate managers always act in the best interest of shareholders Explain. Research and present one CEO (Chief Executive Officer) pay package. Does this CEO earn more money if the company performs well? What penalty does the CEO receive.
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