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Q. Answer the following question using the Keynesian Model of a closed economy. Suppose the Federal government would like to increase output in the short-run and will engage in expansionary fiscal policy. The President contacts you, the Chair of the Federal Reserve, and asks you to take action to keep interest rates close to where they currently are.
a) What action do you take? Illustrate and explain the movements of the IS and LM curves.
b) Illustrate and explain the movement of the aggregate demand and aggregate supply curve both in the short and long run. What potential long term effect should you warn the President about?
This production function does not satisfy the definition of rising returns to scale, constant returns to scale, or decreasing returns to scale. How can this be.
For depreciation purposes, the purchase cost of the warehouse is divided into $100,000 in land also $400,000 in building. The building is a CCA Class 1 asset also is depreciated accordingly.
Show on a graph the market supply of labour considering the graphs of willingness to work and ability to work? and what happens to the labour supply when the willingness to work and ability to work changes?
Explain terrorist attacks foster instability and may affect productivity over the short and long term.
Who would pursue the first objective (maximizing revenues). Explain how could Ralph Lauren s managers provide an incentive for profit-maximizing behavior.
Increase or decrease in the money supply increase the price level to the tolerable range
Explain by how much did GDP increase in 2007 and 2008 because of these transactions.
Kathleen likes avocado also crab dip. After eating avocado also crab dip with four crackers, she switches to cheese with crackers.
Illustrate what inconsistent other than price appear ro have the biggest impact on the demand for McDonald's products.
Select one topic from below. This will be the subject you will research you will need to comprise an outline, a rough draft also the final draft.
why is growth in average labor productivity viewed as a key factor in determining long-run living standards?
Illustrate why does the GDP deflator give a different rate of inflation than does the CPI. Illustrate what is the difference between a medium of exchange and a store of value.
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