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Suppose that in elections President Push wanted to help out Congressional candidates in his party by making the economy look strong: high GDP figures and low inflation. Suppose he increased government spending, hoping to make GDP statistics rise in the period prior to the election. He knows this can lead to higher inflation, but he hopes this policy will affect inflation statistics (CPI) mainly after the election is over.
Discuss the short-run and long run implications of the president’s fiscal policy on output, the price level and real interest rate. Use IS-LM & AS-AD graphs, where the short-run aggregate supply assumes that output is some positive function of price surprises.
How does the success of the president’s strategy depend on how flat or steep the short-run aggregate supply curve is? Thinking of our stories of aggregated supply, what are some things that determine the steepness of this curve?
What is the best way to use static supply and demand theory to analyze a dynamic world which is constantly changing?
Calculate the following elasticities and classify good x. The market situation is as follows: m=$100, Px=Py=$10
is this the same quantity that the competitive market would have provided in equilibrium? What are the market forces leading to this quantity?
Explain how GDP is measured in your country - explain who would benefit directly and who would lose directly from such restrictions.
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, in order to sell the house and move to another city, the homeowners would be required at closing to pay (in add..
Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.
Suppose you purchase a $1500 laptop, a three-year asset, and sell it the next year for $400. What is the change in net cash flow in the year of sale when your tax rate is 40%?
Choose whether to hire a new person in the marketing department or upgrade your computer system.
5 ways to develop strategic business and briefly discuss differentiate, customer-oriented, understand clients need, r-s platform and management, active marketing, etc
q1. one of the most important areas of economic that namely use of leading economic indicators to forecast the future
Explain how is the federal budget deficit affecting the U.S. economy. Essay should be about 400 words. How dependent is American, on the Chinese economy.
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