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1. In 2001, U.S. President George W. Bush and Federal Reserve Chairman Alan Greenspan were both concerned about a sluggish U.S. economy. They also were concerned about the large U.S. current account deficit. To help stimulate the economy, President Bush proposed a tax cut, while the Fed had been increasing U.S. money supply. Use the IS-LM-FX model to compare the effects of these two policies in terms of their implications for Y, I, E, C, I, and TB.
2. The Lithuanian lita is currently pegged to the euro. Suppose that the Eurozone reduces its money supply. Using the IS-LM-FX model, illustrate and explain how this affects Y, I, C, I, M, and TB in Lithuania (Home).
The MPI is defined as increase, decrease or not affect the value of the government expenditures multiplier? Explain!
Reading marginal product, marginal revenue product, and marginal profit from a table. Fill in the missing values for this table:
maria and emmanuel need to cut logs for shelter or gather food to stay alive per day. maria produces 10 cut logs of shelter and 10 baskets of food. emmanuel produces 5 cut logs of shelter and 8 baskets of food.a) what is the opportunity cost for ma..
A local government is considering four possible countermeasures to reduce crimes in the municipal park. Since each option has a different program length of duration, all benefits and costs are expressed in terms of equivalent annual values.
Suppose that Congress passes legislation making it more difficult for firms to fire workers (an example is a law requiring severance pay for fired workers). If this legislation reduces the rate at which people are let go from their jobs
Assume the market demand curve in an industry is characterized by P=1-Q, where P is the market price and Q is the total quantity supplied to the market. Assume there are three firms in this industry.
When the price of a box of herbal tea bags rises from $0.99 to $1.21, the quantity offered for sale rises from 400,000 to 600,000. What is the price elasticity of supply? 2. When the price of wheat rises from $2.34 to $2.46, some farmers switch cr..
Let's assume that thereare no trade barriers and exchange rates are freely fluctuating. At the same time, the European Union develops a technology that reduces the cost of production for most of their exporting products. Explain what will happen ..
macroeconomic policy - inflation. unemployment and growth.question for a decade or more macroeconomic policy in
Describe a decision your company has made when facing uncertainty. Compute the expected costs and benefits of the decision. Offer advice on how to proceed. Compute the profit consequences of the advice.
What did the central banks do to stabilize the financial systems in 2007-2009 and Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
Propose several current and future economic issues confronting and changing the healthcare system. Analyze the significant implications of the issues in question for market efficiency of the healthcare system. Provide a rationale for your resp..
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