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According to the graphical method used in class, figure out how a decrease in government purchases (G) is going to affect the IS curve. Is decrease in government purchases an expansionary fiscal policy or a contractionary fiscal policy? Why?[Hint: Use the Keynesian Cross
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
On your graph, label production and consumption of cars and sugar in Home. H. Is trade beneficial to Home and Foreign.
With vertical integration in a monopolized environment: When a new baseball team enters a league, the effect on nearby teams is to: The true cost of monopoly power to society is attributable to: Natural monopolies are distinguished by
How many units of labor should be employed? b. How many units of capital should be employed? c. What would be the total cost of production?
If David's only illness this year results in an appendectomy, explain how many days will he choose to stay in the hospital
Assume that 4-year Treasury Bonds currently have a nominal yield of 6.2%, and 4-year Corporate Bonds have a nominal yield of 8.5%. Further assume that Maturity Risk Premium (MRP) on all 4-year contracts currently is 1.3%, and Corporate Bonds currentl..
Describe the organizational structure of your selected organization. Evaluate and difference that structure with two different organizational structures.
illustrate the effects of capital formation by comparing the production possiblility curves at the present time and ten years in the future.
Kath has $80 (income M) to spend on pizza (good 1x) and coke (good 2x). The price of a slice of pizza is $4 and the price of a can of coke is $1. If Kath buys only pizza, how many can she buy? Formulate the intercept-slope equation of Kath’s budget l..
In what ways does the Krugman model of trade differ from the Heckscher-Ohlin model of trade? Carefully explain. In what ways does the Linder theory of trade differ from the Heckscher-Ohlin model of trade? Carefully explain.
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
Converse alternatives to GDP as a measure of economic benefits in a current economy.
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