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Journal entry questions are related to the application of the key concepts you learn to the real-world economic issues. The questions contain key economic principles and ideas related to the Macroeconomics topics you are learning. Please feel free to express your perspectives and state how the economic principles and ideas affect your economic decision making process. You should note that there is a limit to the number of words for the Journal entry. You can only enter the maximum 400 words.
Journal
The change in money supply affects the economic agents. Suppose the Federal Reserve increases the money supply to boost aggregate demand during recessionary pressure. How does the increase in money supply affect consumer spending and investment? How does it affect the firm or organization you work for? How do the Federal Reserve policies affect us as individuals (households)?
High rate of inflation is considered bad for the economy since it has various costs. What are the costs of inflation? Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars?
fiscal policy provide data and analysis for the government receipts types of taxes average tax rate the government
What is the difference between gross private domestic in- vestment and net private domestic investment If you were to determine net domestic product (NDP) through the ex- penditures approach, which of these two measures of investment spending woul..
How income may change savings behavior
Elucidate what could Coca Cola do to mitigate any undesirable effects of business cycles.
Where Q is millions of subscribers What is the total cost function? What is the marginal Cost function?
Explain what would happen to the slope or position of the AD curve in the following circumstances.
What are the steps involved in analyzing the changes in the equilibrium of the market. Analyze the effects with an example of events on a market, which includes shift of both the demand curve and supply curve.
An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap-inflationary or recessionary-will theeconomy face after the shock
Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. Plot the resulting yield curve.
Calculate the annual worth (years 1 through 7) of Merchant TruckingCompany's cash flow. Use an interest rate of 10% peryear. Year 0 1 2 3 4 5 6 7 Cash Flow, $ millions 450 -40 200 200 200 200 200 200
If a representative firm with long-run total cost given by TC = 50+2q+2q^2 operates in a competitive industry where the short-run market demand and supply curves are given by Qd = 1,410 - 40P and Qs = -390 +20P, its long-run profit maximizing leve..
The current price in the CPI for a pound of coffee is $7.25, and it is projected to increase next year by 2%, then decrease by 3% in the following year, and then increase by 5% the third year. What is the average inflation rate for the projected pric..
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