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In 2008 the Federal Reserve took pretty extraordinary measures in an attempt to stabilize the economy. You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period was 2%
a. If the housing bubbles busting causes the share of output of investment to fall 6% of potential GDP, what will happen to the economy?
b. If the economy was at potential before and the natural rate of unemployment is 5% what will unemployment be now?
c. What will the inflation rate be?
d. How low can the Federal Reserve lower the Real interest rate*? How much output is recovered? Is it enough to push the economy back to potential?
Because of America's large budget deficits, the government is borrowing much from foreign countries. There are experts who believe, it is not economically wise for foreigners to hold so much of U.S assets.
do some research on great depression and the new deal. also look up keynesian economics. based on the research could
a pharmaceutical company has a patent on a lung cancer treatment drug that gives them a monopoly over thenbsp
Write the expression for this firm's Total Revenue and write the expression for this firm's marginal revenue - what is the profit maximizing (or loss minimizing) level of output
1. you are given the following information about the costs of a perfectly competitive
what are the limits to the u.s. long-term economic growth? is there anything that our government can do to address
public policies often alter the costs and benefits of private actions. why is it important for policymakers to consider
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1. consumer surplus is nota. the value of a good minus the price paid for it summed over the quantity bought.b. greater
Could someone please explain this I think it means that because of the large crop, farmers' incomes will fall because of the increase supply per farmer. Prices would then have to be competitively low to sell due to the high supply and as such the ..
Discuss whether free markets are likely to provide Pareto-optimal levels of the goods, or whether a market failure distorts the markets.
"The Labor Market and Minimum Wage" Please respond to the following: Review the e-Activity, and examine two arguments one for and one against raising the minimum wage. Based on your choices describe whether the minimum wage must be raised or not.
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