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Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 4%, the growth rate of the velocity of money is 3% and that the real economic growth rate is 5%. Now assume that there is a negative real shock. After the negative real shock, the inflation rate in the economy is 7%. Now assume that the federal government decides to increase government spending in order to combat the situation resulting from the rise in oil prices. After the increase in government spending, the growth rate of the velocity of money is 8%.
1. After the negative real shock, what is the the real economic growth rate?
2. When the federal government decides to increase government spending, the ______ curve shifts?
The more progressive the tax system, the: The portion of the public debt owed to foreigners does not represent any real economic burden to Americans because we received money from foreigners when we incurred the debt. The so-called "recognition lag"..
Benny decides to buy living room furniture worth $3000. He plans to finance the furniture for two years. The furniture store tells him that the interest rate is only 1%/mo/mo and his monthly payment is computed as follows:
State whether each of the following events will cause a movement along the demand curve for Big Mac or whether it will cause the demand curve for Big Mac to shift? If the demand curve shifts, indicate whether it will shift to the left or to the right..
If the largest four firms in an industry control less than half the market, their competitive concentration ratio. which of the following typically leads to two formally separate firms being under common ownership? Since the Margaret Thatcher era of ..
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Joey, David, Tracy, and Surly own one track bicycle apiece, and they\'ve each modified to sell them as fixed-gear bikes or \"fixies.\" Joey is willing to sell his bike at $100 or more. Likewise, David will sell his fixie for $150, Tracy at $200, and ..
In 2013, the furniture store PB produced 13 mahogany desks. One of them is sold to Jeanine for $3,349, later that same year Jeanine sold the desk to Pamela for $1,919. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
When a locality is required by federal law to do something, regardless of whether it receives federal funding for that purpose, this duty is called
The cost measure sellers use to determine whether or not to produce the optimal (i.e. profit maximizing) level of output is:
Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of produ..
Create a flyer for your annual festival to distribute in print form throughout your community. Be sure the flyer is colorful, attractive, easily understandable to people with varying reading abilities, and appropriately detailed without being too inf..
Banks attempt to screen out the good credit risks from the bad credit risks to reduce the incidence of loan defaults. To do this, banks do all of the following except:
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