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In the real business cycle model, suppose that government spending increases temporarily (i.e.,Gt increases but Gt+1 does not). Determine the equilibrium effects of this using the diagrams of labor market equilibrium and goods market equilibrium. Briefly explain why demand or supply curve shift in a certain direction. Could the comovement of macroeconomic variables be explained by fluctuations in Gt? That is, does the model predict the procyclicality of consumption Ct, investment It, employment Lt, and real wage Wt?
A recent analysis by Bloomberg Magazine discusses what would happen if England would suddenly leave the European Union, in terms of “shocks” in Consumer expectations, Investment, Credit and Currency. Since this has never happened before, people are u..
If the domestic price of oranges is $3.00 per pound and the world price is $2.50 per pound and if the nation allows unrestricted trade, what will be the result to consumer and producer surplus?
Consider an economy in a steady state with population growth rate n, a rate of capital depreciation Delta, and a rate of technological progress g(growth rate of y* in steady state). At the steady state change in k tilda = 0, where k tilda equals capi..
Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessarily a bad thing for consumers? When might a higher load be a sign of problems..
What will be the complete and final impact on the GDP if the Federal government increases spending and simultaneously increases taxes to pay for the additional spending?
Elucidate how free market features could be introduced to help improve the problem. As your answer also include a discussion of the risks of introducing market mechanisms.
Provide 10 brief bullet points on Anatomy, Physiology and Pathology of the Endocrine system. Connect how hormonal imbalance can affect weight loss. Provide Nutritional tips for the patient to follow, minimum of 5. Provide guidance on taking supple..
For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annually, compounded monthly?
The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..
If the demand elasticity is -2.42 and has a 10 percent decrease in price, what would happen to the quantity demanded. 1. decrease by 2.4 percent 2. increase by 24.2 percent 3. decrease by 24.2 percent 4. increase by 2.4 percent
If goods A and B are substitutes in consumption, a decrease in the price of good B will _________. If goods A and B are substitutes in production, a decrease in the price of good B will _________. If goods A and Z are complements in consumption, an i..
After one year, your original $200 in savings account became $212.64. Find the effective rate of interest?
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