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Explain how the aggregate expenditure function shifts in response to changes in each of time following variables:
1. The real interest rate increases.
2. Consumer confidence decreases.
3. Higher taxes are imposed on business profits.
4. The economies of many countries in the rest of the world go into recessions.
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?
From the regression output, estimate the demand function when income is $40,000 and price is $2 per gallon. Explain the result in terms of R-square, T-test, F-statistic, and signs of each X variables.
The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
Assume that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced.
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
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