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Fiscal policy is most effective in controlling inflation when the economy operates in the _____ region of the aggregate supply curve.
1) horizontal 2) vertical 3) upward rising 4) downward sloping 5) backward bending
Consider a country that is operating with a fixed exchange rate under conditions of perfect mobility. Explain what effects you would expect an in increase in world interest rates to have on the equilibrium values of the following domestic macroeconom..
Describe the coefficient of determination. Suppose if you were given that the independent variable was 5, what would the predicted value be.
Mitchell's income is $150, the price of X is $4, and the price of Y is $2. Given these prices and income, Mitchell buys 20 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 1. Given these prices a..
In 2008, a firm has receipts of $12 million and expenses (excluding depreciation) of $5 million. Its depreciation for 2008 amounts to $3 million. If the effective income tax rate is 35%, what is the firm’s net operating income after taxes (NOPAT)?
Suppose for three years income has been increasing and the income elasticity of demand for ACME tools is 0.3. What will the change in the number of ACME tools being purchased be, if the rise in income over the past 3 years has been 10%. If forecaster..
A number macroeconomic variables decline during recessions. One of these variables is the GDP. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic..
Illustrate what will happen to the price of bonds also to money holding if the Fed changes the interest rate as a result of a decrease in the money supply.
What is the MRP of labor equal to in this situation? Assuming that Economan takes the price of labor as a given, what is the maximum daily wage that would make it in his best interest to hire this additional employee?
The demand and supply equations for donuts are: Q = 160 – 4P and Q = -20 + 2P. Find the deadweight loss that would occur if a price ceiling of 22 were introduced. If scarcity was to disappear and donuts were free, how many donuts would people want?
Consider the following: “In 1973 several major oil producing countries formed a cartel. The cartel effectively decreased the supply of crude oil. Gasoline prices rose sharply as did the total expenditures on gasoline.” Use a supply/demand diagram of ..
According to Milton Friedman and Anna Schwartz, what was the Federal Reserve’s crime of commission that occurred in the Summer/Fall of 1931 that had a devastating effect on the course of the Great Depression?
A major principle guiding the design of the Constitution is separation of powers. Which of the following is part of the separation of powers principle?
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