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Introduction to Economic Fluctuations
1. Explain the following components of LEI index: a. Average workweek in manufacturing b. Index of stock prices c. Index of consumer expectations d. M2
2. Explain the slope of the aggregate demand (AD) curve using the quantity theory equation.
3. Suppose that the government reduces the money supply to reduce inflation. Using graphs, illustrate the impact of this policy on output and inflation both in the short-run and in the long run. State what would happen to unemployment. 10. Read the case study titled "A Monetary Lesson from French History" from Chapter 10 (Mankiw). Was the government successful in its goal to reduce inflation? Why was the government successful/unsuccessful?
4. Suppose there is an exogenous increase in the velocity of money. Show graphically what would happen to output and inflation in the short-run and in the long run. Also mention what would happen to unemployment.
5. Suppose workers have unionized and have bid up their wages. Explain graphically the impact of this event on output and inflation. What sort of stabilization policy would you suggest to restore the economy?
What monetary policy is, how it is related to banks, and how it affects interest’s rates, inflation, GDP and unemployment. Include information on what money is and why we use it along with the money multiplier.
Draw a graph to analyse the effects of 40 per cent tariff rate in Korea on the price, domestic supply of and demand for beef, and compare the situation with no tariff case.
A multiplicative demand model
New Light Corporation has just created a solar panel capable of generating 200 percent more electricity than any solar panel currently on the market. As a result, New Light is expected to experience a 15% yearly growth rate for the next 5 years.
Public Choice theorists have emphasized that there is a bias toward growth in government due to the "concentration of benefits" and the "diffusion of burdens" (or costs) from government spending. Some people, like Wilhelm Ropke.
If you both bring supplies to squeeze your own lemons, you can keep up with flow of customers, can charge more per cup and make about an average of $54.60 If you both bring some awful, over-sweetened powdered lemonade mix, you can keep up with th..
in the textbook there are two circular flow diagrams one that represents the flows in the macro-economy as a closed
Buyers consider Marlboro cigarettes and Budweiser beer to be complements. If Marlboro just increased its prices, what would you expect to occur in the Budweiser market?
Research and respond to the following questions in essay format, including provision of references for support. Each answer should demonstrate exploration beyond the text, and should demonstrate depth worthy of an MBA. Analyze the effectiveness of th..
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assume that all the factors affecting demand in this model remain the same but that the price has changed. further
A, B, and C have the following preferences for fruits: A: apples > bananas > peaches > pineapples B: bananas > apples > pineapples > peaches C: apples > pineapples > peaches > bananas Use the Borda Count method to determine the most preferred fruit.
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