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Presume that the economy is in long-run equilibrium. For each of the following two scenarios describe what happens to aggregate demand, price level, and output and illustrate your answer with a graph.
1. People decide to spend more time at home instead of out visiting amusement parks, seeing movies, and doing other things.
2. Favourable tax policy and low interest rates cause businesses to increase their purchases of investment goods.
Determine the weekly payment with weekly compounding of interest.
Suppose the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans because economic conditions are bad. A Federal Reserve official notes: "A restrictive monetary policy can force a contraction o..
Presume the government decides to increase taxes by $20 billion to increase Social Security benefits by the same amount. How will this combined tax transfer policy affect aggregate demand at current prices?
Reflect upon the ethical requirements imposed on businesses by the law and society. Sarbanes Oxley was enacted in response to widespread ethics violations. Do publicly traded companies owe ethical duties to their investors beyond making a profit
For every penny that the price of gasoline goes up, the U.S Postal (USPS) service experiences a monthly fuel cost increase of $8 million. State what assumptions you need to make to answer this question
Suppose there are two countries that are identical with the following exception. The saving rate in country A is less than the saving rate in country b. Given this information, we know that in the long run
Compare and contrast the following broadband methods for home Internet access: Cable, DSL, Satellite include a description of each, pro's and con's and why you select one over the other.
Based on your understanding of frictional, cyclical, and structural unemployment, do you think that this high unemployment rate can be explained by frictional unemployment? Why or why not?
consider the following class of estimatorswsuba 1a1y11a2y21a3y31a4y4 where ai are the constants.a what restriction on
suppose you are the manager of the bank that has 15 million of fixed-rate assets 30 million of interest rate- sensitive
woodco manufactures tables and chairs. each table and chair must be made entirely out of oak or entirely out of pine. a
The ECON6351 company was considering a price increase
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