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The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct?
a. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
b. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
c. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.
d. Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
In this discussion, you will compare and contrast monetary and fiscal policies. Consider two recent national crisis points: 9/11 and the banking failures of 2008. Was fiscal or monetary policy more immediately responsive to each crisis? Why? What is ..
Transaction cost is:
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When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.
Just breaks even over the year as whole. a Wouldn't the restaurant do better by staying closed out of season. At what cost will it shut down, given that all its fixed costs are sunk.
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Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent. What are the risks associated with pursuing such a strategy?
Calculate real growth per capita in the following countries
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What is in USD million dollar conversion? Below all number RMD to USD MILLIONS?
Illustrate what public policies might be used to address one of the problems you identified in your response to the question above.
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