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Macropoland, a country that is a natural gas and oil importer, has a natural rate of unemployment (at the full employment level of GDP) that is about 4.5%, and the long run average rate of inflation over time has been about 2%. However, during the period 1973-1974, the county experienced an inflation rate of about 15% while simultaneously experiencing unemployment of nearly 13%.
At the present time, Macropoland is experiencing very sluggish consumption and investment (a result of a fall in the housing market), and unemployment has again edged up to around 9%. Inflation is very low at 0.4%.
Macropoland has just hired you as their economic advisor. You have a big job ahead of you. Using your knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?
make comparision between the situation after both of these changes have happened with the situation before any of these changes have happened.
Aero Company currently has net income of $3 million and 1. million common shares outstanding which sell for $20 per share. Aero has decided to issue new stock to raise $4,000,000 to expand its operations.
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
Assume these customers live in Cuba and get a ration of 50 units of Q each month. What is the marginal willingness to pay at this level of consumption for each customers ?
Explain how have these people changed monetary strategy, fiscal policy also laws that govern businesses since the collapse of the economy.
Discribe in detail ONE factor of how government involvement in the marketplace can impact or not impact the economy.
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
Changes in government spending and interest rates
What kind of shocks could have caused this change to the money demand function? Determine the new interest rate and equilibrium level of output.
Utilizing free markets and the price system always results in a more efficient resource allocation than central planning. Just look at what happened in Eastern Europe.
Analyze internal as well as external factors impact organizational behavior in the military or another agency.
Identify how interest rates affect the cost of operating the business-Explain how business planning and operations are dependent on monetary variables other than interest rates
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