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Discuss some of the damaging effects deflation has on an economy and what would be a monetary policy prescription to decrease or eliminate deflation? How would deflation affect your business or a business you are familiar with?
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Given table of data comprising real GDP and its components over a number of years, compute compound annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption.
Illustrate what is the cost of the same basket of goods and services in 2005.
If increased government spending and tax cuts were equally effective in stimulating aggregate demand, which fiscal tool would you select? Why?
Illustrtae what are the nominal rates of interest for both the United States and the euro area?
The average weekly earnings of bus drivers in a city are $950 with a standard deviation of $45. Assume that we select a random sample of 81 bus drivers.
Other than economies of scale, Illustrate what would you consider to be barriers to entry into a market. Are these barriers the same for all market structures.
Assume that the unemployment benefits provided by the private sector (firms) are increased permanently, please answer the following questions.
The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?
Assume you are an economic consultant for a big company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities.
Illustrate Wwat could it or should it have done differently. Please provide references to support your position.
Assume that the economic news is not good and businesses become pessimistic about the future. How would this change in attitude affect the investment demand curve and the impact on real GDP.
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