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Assume that the economy is currently in short run equilibrium but is experiencing inflationary gap. If you are a Keynesian economist and believe that economy is NOT self-regulating under these circumstances, graphically illustrate and explain how the economy would move back towards full employment equilibrium.
The domestic supply-and-demand diagram below represents a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity?
Elucidate the reasoning for your vote based on the four steps of risk assessment. Consider any relevant political, social, and economic aspects involved.
How does rational expectations affect our perceptions concerning the speed or rate at which an economy moves back to potential. What does this say about the importance of supply shocks relative to demand shocks? Explain please.
The current budget deficit of USA is not sustainable primary because--------
discuss the change in the U.S. unemployment rate and inflation rate over the past year based on the Phillips curve concepts.
Because a steep demand curve indicates prices can increase quickly when the quantity demanded rises only a little bit, steep demand curves represent goods that are very elastic. When price controls are implemented, one group wins at the expense of th..
Ann’s preferences are represented by a utility function UA(x). Suppose one were to (colloquially) say that Carol has more “sensitive preferences” than Ann: her utility function UC (x) satisfies UC (x) = 2UA(x). Prove that for every choice set, Ann an..
A good whose demand curve shifts to the left as income increases is a(n): Select one: . normal good B. substitute good C. inferior good D. inelastic good E. abnormality good
Identify two examples of a paradox in health care and pair each with an imperative for change from the Summary of the IOM Report, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America. Discuss a possible policy solution to..
The incidence of a tax falls more heavily on
Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Next, suppose the..
Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? What..
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