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Question 1
Explain how the original Phillips curve differs from the expectations-augmented Phillips curve (or the modified, or accelerationist Phillips curve).
Question 2
Explain what effect a decrease in the future expected interest rate will have on the IS curve and LM curve in the current period.
Question 3
Suppose the interest parity condition holds. Also assume that the one-year interest rate in Australia (home country) is 6% and that the one-year interest rate in Canada (foreign country) is 6%. What does this imply about the current versus future expected exchange rate (for the Australian and Canadian dollars)? Explain.
Steve plans to take the contract that provides him with the highest net present value. At what discount rate would he be indifferent between the two contracts.
In a certain year the aggregate value demanded at the existing price level consists of $100 billion of use, $40 billion of investment, $10 billion of net exports, and $20 billion of government buy.
Elucidate the impact of inflation, unemployment and the business cycle. Explain if the conditions are consistent with the Keynesian or classical economic theory.
Describe the maximum insurance premium that the individual is prepared to pay.
Assume that the Fed Reserve adopts an inflation targe of 3% for its monetary policy.
Total population coincides with total workers and is denoted by L and compute the Solow residual and describe clearly the changes that occur to the graph and compare the final result with the initial situation
Should a country's income be distributed to its members according to their contributions to the members' requires? Should society attempt to equalize income/economic opportunities?
Paul Volker was chairman of Federal Reserve system in the late 1970 and through most of the 1980.
Kate Austen must generate a sales predice to convince the loan officer at a local bank of the viability of Marina Del Rey, a trendy west coast restaurant.
Assume your bank increase its minimum-balance requirement for free checking on checking accounts by $500. You take $500 out of your passbook savings account
Create an educated guess as to illustrtae you expect to happen to short-term.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
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