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Keynesian theory aggregate demand
1. At the insistent urging of President Obama, Congress has enacted massive spending bills totaling over $1 Trillion. This is sold to the public as "economic stimulus". What is the purpose of this orgy of spending? Explain the macroeconomic rationale for this action by the Federal government.
2. According to the (Keynesian) theory in does it matter what the money is spent on?
3. How is the above stimulus bill going to be financed? According to the (Keynesian) theory, does it matter where the money comes from?
4. Using common sense (and not Keynesian theory), discuss the amount of stimulative effect we can expect, depending on how the "stimulus" is financed: by taxes, by borrowing from the U.S. population, by borrowing from foreigners, or by borrowing from the Fed. What are the long term consequences?
Use the above data to answer the following questions-If the price of entertainment increases by 2 percent, what will happen to the quantity of food demanded? Please be specific
Explain what is the stance of other developed countries on this issue.
Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Elucidate what does the US government hope to achieve through the use of its antitrust policy.
A severe drought has make a shortage of tomatoes. Jim makes his own barbeque sauce. One of the main ingredients of his sauce is fresh tomatoes.
Illustrate what would be the impact on labor and capital markets of such a shift in tax policy. What is the likely differential incidence of substituting a payroll tax for an equal-yield corporate income tax.
Explain how the distinction between expected and unexpected inflation is important to the distributional effects of inflation.
Assume that an engineer is deciding either not to move to northern Virginia or remain at his current job in Milwaukee.
The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows-What is the price elasticity of demand if price equals $500?
Give the before-tax charcoal price and quantity exchanged. Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.
The government imposes a fixed fee per year on each firm operating in a competitive market.
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