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Keynes thought that, during an economic slowdown, unemployment could be reduced by increasing aggregate demand (AD).
In the circular flow diagram businesses pay wages, rent, interest, and profits to households in return for the use of factors of production. through the factor market businesses purchase goods and services from households in return for consumption..
Given that the production function is given by: Q = 10L - L2+ 60K -1.5K2, where Q is total output, L is labor, and K is capital, what is the firm's optimal combination of capital and labor?
Write something about how the economy in your country ( my country is Saudi Arabia ). Tell about economic activities of the past and of the present.
Discuss the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the discretion of policymakers at each policy meeting.
1. Suppose that a local government decides to provide more funds to the local police department in order for the department to hire additional police officers. Is there an opportunity cost of this action? If so, how would you ..
Using demand and supply analysis, explain the influence of the imposition of a maximum price and a minimum price on a product on price and quantity.
Why does the government sanction this form of contract- recognition of the institution of marriage? How does the issue of the gender of each participant in a given marriage fit into the discussion?
If the price of that product or service went up by 10% overnight, how would you adjust your behavior in the short term? How would you adjust your behavior in the long term?
Economists have been grappling with a debate regarding the extent to which stabilizing asset prices should be a goal of monetary policy. The three goals of the Federal Reserve Board are to have economic growth, full employment, and price stabilit..
Assume a country decides it will either dollarize or create a currency board. Of these two options, why might dollarization be a better choice.
How much of a shortage or surplus of gasoline would result? Calculate the effects of this policy in terms of the changes in consumer surplus and producer surplus.
Consider a market where demand is: P = 6 - Q and supply is S: P = Q. 1. Equilibrium quantity Qe is Total surplus TS is (do not forget to account for the subsidy expenditure SE) Construct a budget neutral subsidy in the above market.
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