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The hypothetical information in the following table shows what the economic situation will be in 2015 if the Fed does not use monetary policy: Year Potential GDP Real GDP Price Level 2014 $15.2 trillion $15.2 trillion 110.0 2015 $15.6 trillion $15.8 trillion 115.5 a. If the Fed wants to keep real GDP at its potential level in 2015, should it use expansionary policy or contractionary policy? Should its trading desk be buying T-bills or selling them? b. If the Fed''s policy is successful in keeping real GDP at its potential level in 2015, state whether each of following will be higher, lower, or the same as it would have been if the Fed had taken no action: (i) real GDP; (ii) potential real GDP; (iii) the inflation rate; (iv) the unemployment rate.
Determine the main differences between re-engineering and continuous Improvement as Quality Management Philosophies?
Illustrate what will be the actual dollar change in revenue and does it rise or fall.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
Explain why are prices generally higher for goods/services in London as opposed to Newcastle, or New York as opposed to San Fran.
Assume the government imposes a fixed tax t per unit quantity on each firm. Explain the impact of this tax on following variables;
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. suppose further that people want to
Suppose that, on the basis of a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9000 ..
Explain why is the depreciation of capital good a cost of society
according to neuroeconomicsselect onea. logical decisions take place in the limbic system or amygdale and emotional
If a country wants to keep its exchange rate from changing, it must give up some control over its money supply. Is this statement true, false, or uncertain? Explain your answer.
Graph the production function, with capital on the horizontal axis, and use your graph to explain the difference between a doubling of the labor force and a doubling of total factor productivity.
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