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Question about open market operations
How is it that monetary policy, such as open market operations, injects "new" money into the economy, where as fiscal policy such as tax incentives does not inject "new" money into the economy? What is the difference? Could you explain.
Explain how have these people changed monetary strategy, fiscal policy also laws that govern businesses since the collapse of the economy.
To what extent were monetary factors responsible for the recession of 1981 and 1982? Provide a full analysis and be specific. Please site references where appropriate.
Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?
Explain how have US economic or fiscal policies affected employment rates
Evaluate the following: The laws of supply and demand cannot apply to the labor market because labor is not a commodity to be bought and sold like machines.
Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C= 10Q and demand is P = 30- Q.
Describe what effect a contractionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Briefly explain in words the sequence of changes that occur as the two economies move from no trade to free trade.
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
Read the following text and answer the questions below: Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
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