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Over the business cycle,
a) real GDP fluctuates around its trend.
b) neither real GDP nor potential GDP fluctuate because they just grow smoothly along their trends.
c) only real GDP fluctuates around its trend and potential GDP remains equal to its trend.
D) potential GDP fluctuates around its trend.
E) only potential GDP fluctuates around its trend and real GDP remains equal to its trend.
Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is a decrease in the tax rate on interest income, from 20% to 15%.
According to the theory of rational expectations, individuals will respond to expansionary monetary policy by:
Using graphical analysis for demand and supply, please show in two graphs how an improvement in the technology (such as using artificial intelligence programs for diagnosis/interpretations) would affect the healthcare market, an increase in mergers a..
Sketch the isoquant corresponding to an output level of 100 units What is the MRTS for this production function? Does the isoquant exhibit a diminishing MRTS?
The short run for a company is
Plaintiff shipped to Defendant—Pizza Pride Inc. of Jamestown, North Carolina—an order of mozzarella cheese totaling $11,000. Plaintiff, a manufacturer of men’s clothing in Los Angeles, contracted to sell a variety of clothing items to Defendant, Harr..
Consider a survival game in which a large population of animals meet and either fight over or share a food source. There are two phenotypes in the population: one always fights, and the other always shares. Draw the payoff table for the game played b..
Construct a PPF for a country that produces food and video games and faces increasing opportunity costs. Show how the PPF changes given the following events.
In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $20 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5.
Bill Simmons is the manager of a small restaurant and must decide how much money he owes his suppliers. The best way for Bill to approach this as a critical thinker is to
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? $ billion.
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