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Using the aggregate demand and aggregate supply model, draw an economy in a boom with equilibrium national income above full employment GDP. If the government decides to intervene to return the economy to full employment, illustrate and explain what will happen to the economy in the short run and in the long run.
Explain, illustrating with graphs as necessary-be sure that the shape of your supply and demand curves make economic sense.
Expalin why did not Keynesian theory provide successful solutions to the German economy where unemployment currently around 14%.
Mr. Shanku has borrowed dollars in the US but is now concerned regarding its currency risk. What alternatives does he have to limit his risk.
Describe arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
Explain how do the principles of microeconomics which you have leaned in this course apply to other nations.
Suppose no increase in the price of labor, how many workers will the bakery hire.
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Thailand Economy: I am third year student at college of Business (Finance). I have Macroeconomic research paper about Thailand economy. I want research paper and PowerPoint slides to present the paper.
How much does it choose to sell when it enters the market? What is the resultant market price? How much does each of the two firms earn in profits?
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
Explain how does the Federal Reserve accomplish these goals.
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