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Suppose the Stimulus package (The American Recovery and Reinvestment ACT of 2009) for $862 (originally it amount was approved for $787 billion and subsequently increased to $862 billion) was allocated for spending in all 3 components of the AE model of Keynesian Macro model (RGDP = C+I+G); where they spent the bulk of it in G (government expenses for infrastructure), some of it in Ta x rebates ( - T), and the rest of it in the form of subsidies/credit in Private business investment (I). If the actual increase in RGDP was $2 trillion ($2,000 bullion), assuming other things stay the same, estimate the actual or real world effective multiplier. Show you’re your work of estimations.
Consider this statement. “It is estimated that leaky pipes and dripping faucets are the source of hundreds of thousands of dollars of lost water each year. Business firms could reduce waste by inspecting more pipes thoroughly and repairing water leak..
Suppose that your demand curves for gadgets and widgets are both straight lines but your demand curve for a gadget (DG) is much more elastic than your demand curve for widgets (DW). Draw a graph that illustrates your demand and transactions for gadge..
Illustrate what would be the production possibility frontiers for Brazil as well as the United States.
Explain the link between the aggregate supply curve and the Phillip's curve. If the natural rate of unemployment falls, how will this affect the Phillip's curve?
If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money. The federal government’s control of the money supply, which influences ..
q.assume that in 1998 the following prevails in the republic of nurd y200 g0 c160 t0 s40 iplanned30assume that
Has the United States become more or less economically free during the past decade? What impact will this have on the future economic growth of the United States.
There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator depending on the issue under consideration.
illustrate what do you think will characterize the goods which the EU exports to the United States also the goods which the United States exports to the EU.
Illustrate what would be effect of policy described in part (c) on economy's stability over business cycle.
Suppose that the Thai Baht is trading for $0.02, inflation in the US is 3% and inflation in Thailand is 1%. What must happen to the exchange rate in order for the purchasing power parity condition to hold?
The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following
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