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In the class, we discussed the Paradox of Thrift argued by John Maynard Keynes. According to the argument, even if many household decide at the same time to increase their saving, the total saving will not increase in the long run, while it leads the economy to a recession. For example,
case1: Income = N, MPC = ?, MPS = ?. case2: Income = N, MPC = ?, MPS = ? where?? and 0 <1. Even though household decide to save more in case 2, the total saving in the long run will be same in the both cases. (Question) Prove that the total saving in the long run in case 1 equals to that in case 2. -At this time, I recommend you to solve this question theoretically using N, ?, ?, ??, ?? rather than using specific number such as 0.8 or 0.9.
Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.
The notebookalso comes loaded with one of four different games. How many different combinations of colors and games are possible? If you were to order three different notebooks withoutstating preference on color or games, what is the probability t..
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In Japan potential GDP is 600 trillion yen and table demonstrate aggregate demand and short run aggregate supply schedules.
Explain why cannot nations like Greece or Spain use quantitative easing as a means to stimulate their economies.
Explain why the Fed must normally add reserves to the banking system via open market operations, on most days, in order to maintain its interest rate target in the federal funds market.
What is the labor force participation rate? What was the labor force participation rate in 2008? How has it changed since 2008 and what does this change imply for the state of the economy? Does the labor force participation rate effect the unemplo..
Describe prison labour and elucidate how it affects different cultures also societies and explain the rise and fall of labour in prisons.
If the government decides to intervene to return the economy to full employment, elucidate what will happen to the economy in the short run and in the long run.
Assume that Japanese and U.S automakers produce on identical isoquats. Wages are higher in Japan than in the United States.
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