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Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spending multiplier is called the balanced-budget multiplier, defined as the increase in real GDP/increase in government spending. By following the example from the previous question, how mcuh is the balanced-budget multiplier?
Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
Supply-side economists and monetarists were very worried about the plan and the support it received from the Fed. What specific problems might a monetarist and a supply-side economist worry about?
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
Using the 'standard' Taylor rule with Inflation PCE (not the core), and using end of 2011 data (2011-10-01) what is the federal funds rate implied by the 'standard' Taylor Rule?
If graphed, would the curve for this equation slope upward or slope downward and are the variables C and Y inversely related or directly related?
Illustrate a range of factors which might determine whether an internal or external strategy is pursue such a growth strategy.
for the nation as a whole the expansion of production of one product must involve a decrease in the availability of the other.
Based on economist Albert Rees, there is evidence that contracts sometimes exist "among employers not to increase wages individually or not to employee away each other's workers
Now, suppose that initially z=2 and the economy is in the steady state you calculated in part a. . Then suppose that z falls to 1.8 permanently. What is the new steady state? Determine capital per worker znd output per worker in each of the first ..
If average variable price are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Many people find the current unemployment figures for Australia at 5.5% unbelievable. Why is this? Why might the official statistics be inaccurate
Elucidate when did we have the last major tax increase. How did the economy react to that over the next few years.
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