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Full employment after a recession
Suppose the economy is suffering from a recession. What policies would you implement to help the economy reach full employment? What are the benefits and shortcomings of these policies?
Explain the trade-offs between any three of these options. In other words, what will you gain, and what will you have to give up if you choose each of the three options?
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
Budweiser, Miller and Coors who together produce 80% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
Assume that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed following levels of production corresponding to different numbers of workers:
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
In an article about the financial problems of USA Today, Newsweek, reported that the paper was losing about $20 million a year.
Indicate whether each of the following statements is true or false and explain why.
Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output-How does this tax affect the firm's fixed, marginal, and average costs?
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
Illustrate what are the 2 policy options used to influence the economy
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