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Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of an expansionary Fiscal Policy and Monetary Policy on the overall level of economic activity. Include the conditions in which Monetary Policy would have a greater influence on GDP growth and the conditions in which Fiscal Policy would have a greater influence on GDP growth.
Explain if an organisation that forecast future sales and develops a budget on the basis of these forecasts conducting marketing planning?
Interest rates on U.S. treasury bills are typically much lower than interest rates on U.S. treasury notes and bonds. If the federal government wants to reduce the interest charges it pays when it barrows money, why doesn't the treasury stop selling t..
Explain why there is a natural unemployment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
If the entry barrier is removed consumers will be better off because consumers will enjoy greater consumer surplus. Explain.
With some services, e.g., checking accounts, phone service, or pay TV, consumers choose between two or more payment plans. One can either pay a high entry fee and get a low price per unit of the service or pay a low entry fee and a high price per uni..
The notion of rent controls can be somewhat controversial. What is the economic rationale for a city to enact rent controls? What are a few unintended consequences of rent controls in large cities? Be specific.
Which of the following would most likely result if the federal government increased spending without increasing tax revenues during a period of full employment?
Explain how inflation can have redistributive effects in the economy. What are these? Provide at least two examples that illustrate these redistributive effects.
Calculate price elasticity of demand for movie tickets if demand for movie tickets increases from 220 tickets to 290 tickets with the decrease in price from $12.50 a ticket to $8.50 a ticket.
You have the utility function U(x,y) = 3x+y, the price of X is $1 and the price of Y is $2. What is the formula for the expenditure minimizing bundle? You have the utility function U(x,y) = 3x+y, the price of X is $1 and the price of Y is $2. What is..
As the United States economy moves out of a recession, U.S. financial investors increase their purchases of stocks that are expected to earn a higher rate of return than they are currently earning on their savings account deposits.
You find out which your aunt works for a defense manufacturing company which has several defense contracts with the government.
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