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By early 2008, most economists believed we were heading towards recession. Congress and the President passed an Economic Stimulus Package (Expansionary Fiscal Policy) and the Federal Reserve cut interest rates (Expansionary Monetary Policy). Explain what was happening to the economy in terms of the AS/AD model, including what would need to happen to bring us out of the "recessionary gap". In other words, using the AS/AD model as a starting point, explain the economic situation of 2008.
a. If Mrs Siegal can only choose one alternative, and if she wants to maximize the most healthy days per dollar that she gets, which option will she choose? b. If the price of a pill ncreases to $3, which option will she choose?
What is the fiscal and montery policy actions in saudi arabia since the start of the global financial crisis
Elucidate the difference among the statement "the money supply is fixed" and the statement "the money supply is exogenous".
Suppose the firm raised the price to $4.00 while increasing its advertising expenditure by $100. Would this be beneficial? Explain. Illustrate your answer with the use of a demand schedule and a demand curve.
Illustrate what will the new level of nonborrowed reserves. If interest rates do not change, what will be the new level of total reserves.
Explain how have monetary and fiscal policies affected the prices of the product the petroleum industry produces.
Economists generally agree that high budget deficits today will reduce the growth rate of the economy in the future
Select an article in a newspaper or magazine that discusses a government policy on goods or services.
Sketch Sally's indifference curves and explain her consumption choices in term of marginal utility.
Tom total revenue from cafe is 50000 per year, he bought a coffee machine costing $5000 an interest rate of 5 percent and $3000 is a loan from the bank which the rates is 10%
marketplace labor demand is typically more elastic in absolute value than market labor supply. A person who has a substitution effect that dominates his income effect will increase hours worked when an income tax is imposed.
Some states have had laws limiting the sale of most goods on Sunday. Most customers oppose these laws because they discover Sunday afternoon a good time to shop,
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