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According to the Keynesian Cross model, how would each of the following shocks affect real aggregate income (Y) in the short run, all else equal? For each shock, be sure to clearly state a predicted direction of change for income, illustrate your prediction with a Keynesian CrossDiagram, and explain your predictions intuitively in words.
a. Government purchases decline
b. Congress cuts household income taxes
c. Autonomous consumption increases
d. Total factor productivity increases
In April 2000, the seasonally adjusted unemployment rate was 3.8%. By June 2001, the unemployment rate has increased to 4.5% yet the measures by the fedreal reserve tlo reduce short-term interest rates were taken in stages, and in fact the unemployme..
For each of the following situations, explain whether the demand curve for bonds, the supply curve for bonds, or both would shift. Be sure to indicate whether the curve(s) would shift to the right or to the left. What would be the effect on the equil..
disposable personal income decreases by $50 billion and trade deficit is reduced by $15 billion. By how much has national income (Y) change.
A firm pays a wage of $40 per hour to 25 unskilled workers, $60 to semi-skilled workers, and $80 to 10 skilled workers. Find the weighted average wage paid by the firm.
Assume that economic growth is slower in the United States than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for the United States with respect to exports and the value of the doll..
In "Kitchen Nightmares," Chef Gordon Ramsay visits struggling restaurants and gives the owners of the restaurant a number of recommendations intended to reverse the restaurant's prospects. Explain how the recommendation is an application of Economies..
Provide recommendations for the following three bullets on General Motors. Please provide sources. The impact of new companies entering the market, mergers, globalization on the market structure, price elasticity of demand, pricing, and the sustainab..
The currency of Iceland is called the Krona. in July, 2007 the exchange rate was roughly 60 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar. a) Over this period, would you expect exports from the US to Iceland to ..
Conduct a market analysis for your chosen company and develop a report that will be given to the senior management of your chosen company. The objective is to develop a Product Innovation Charter (PIC). A PIC is a written document, prepared to chart ..
An example of an exclusive union would be:
Economies of scale throughout the range of market demand give natural monopolies
What impact will high and variable rates of inflation have on the economy? How will they influence the risk accompanying long-term contracts and related business decisions?
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