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1.If exports fall while imports rise, what happens to the aggregate demand curve?
2. If government expenditure goes down while taxes are raised to balance the budget, what happens to the aggregate demand curve?
3.Suppose that government spending is raised at the same time that the money supply is lowered. What will happen to the position of the aggregate demand curve?
4. Why does the aggregate demand curve shift when animal spirits change?
5.If the dollar increases in value relative to foreign currencies so that foreign goods become cheaper in Canada, what will happen to the position of the short-run aggregate supply curve? The aggregate demand curve?
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Explain why is the "1 free" free to the buyer but not to society. At which point if any should the government regulate such promotions like these.
Compute Brazil and the United States with the state of the economy.
In Northlandia, there are no labor contracts; that is, wagerates can be renegotiated at any time. But in Southlandia, wagerates are set at the beginning of each odd year and last for twoyears. Why would equal-sized falls in aggregate output
What are the two basic choices for them to get out of financial trouble Explain the impact of each. Why are some states playing for a federal bailout if needed. How is that like a game of Chicken Explain. Why would the New Congress do better to le..
Elucidate whether you would draw an aggregate demand or aggregate supply diagram and predict what shift each situation would cause.
earson Brothers recently reported an EBITDA of $16.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization?
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fac..
Illustrate what are the effects of the current tax policy on US businesses in the short-run and in the long-run.
Describe why relatively flat as opposed relatively steep labor demand curves are more consistent with empirical observation that there are relatively minor changes in the real wage rate over course of business cycle.
You are in the market for a used car. At a used car lot, you know that the blue book value for the cars you are looking at is between $20,000 and $24,000. If you believe the dealer knows as much about the car as you, how much are you willing to ..
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
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