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Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the IS-LM model to illustrate graphically the impact of the reduction in government spending on output and interest rates. (Be sure to label:
i. the axes;
ii. the curves;
iii. the initial equilibrium values;
iv. the direction the curves shift; and
v. the terminal equilibrium values.)
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Give three reasons why firms produce in Germany rather than in a lower-wage country.
Select any low income country (or countries) on which you can find data on the following (a web search should yield you the required information)
"If every employer hired its best qualified applicants for a job at every opportunity, the phenomenon of black poverty (as distinct from poverty) could be wiped out in ten years." Do you agree/disagree? Comment.
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Compute total revenue, marginal revenue, total cost and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?
Explain which of the following transactions would be directly counted in 2007's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export.
What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P x = $5, P y = $10, X = 20, and M = 500?
What elasticity of demand did the Village Administrator seem to assume here in his prediction for 1970- 1971? Compute the approximate elasticity of demand (round off, two decimal places is close enough).
Using the following data calculate Disposable Income:
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