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1. Ronald Reagan ran for office with economic proposals that focused on businesses. The idea was that favorable tax policies and less regulation would make it easier/more profitable for firms to produce. Circumstances didn't really let these policies be fully implemented, but if they had been successful, the long run effect of these changes would have been _______ in the price level and ________ in real output.
A - none of the listed options
B - decrease, no change
C - decrease, increase
D - increase, decrease
E - increase, no change
2. Most economists agree that savings is key to economic growth. This means that in the short run some consumption must be sacrificed, but in the long run the economy can produce more goods and services. In other words, in the short run savings ______________ and in the long run this _______________.
A - lowers AS, lowers AS
B - raises AD, lowers AS
C - lowers AD, raises AD
D - lowers AD, raises AS
E - none of the listed options
1) U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents? What are the limitations of the GDP as a measure of economic well-being? Given t..
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Use supply and demand curves to analyze increase/decrease for the following scenarios? i) shift ii) movement iii) equilibrium price iv) equilibrium quantity. Coffee prices soar due to a shortage of coffee beans. Market: Donuts. Prices for next year a..
Consider a perfectly competitive market for catfish. Fishers who catch catfish clean and package them before offering them for sale. The graph below shows the cost curves of a typical firm in the market.
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What effect, if any, would consumers pulling money out of their checking accounts and putting it into home safes have on investment, interest rates, and GDP?
Compare the Federal Reserve System to another central bank of your choice. Analyze the advantages and disadvantages of each system’s approach as well as the benefits and challenges of these systems. Topics to consider include but are not limited to i..
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What would the annual percentage rate be if the city plans to make an interest payment of $2 million - The City of Phoenix plans to buy five additional mass transit cars for $15 million, and pay off its loan in 10 years.
Consider Solow's model when the production function is Y = 1000K0.3 L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Suppose this economy was in its steady state when unexpectedly Total Facto..
What is the short-run equilibrium price. What is the short-run equilibrium market quantity.
in october 2008 canadian consumer self-confidence plunged to levels that last seen in the 1982 recession. as per some
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