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Assume an economy is closed. According to classical economic theory, explain what will be the long-run effects of the increase in government purchases of the late 2000s. You need to present and discuss a formal model in detail for this question and then explain the implications of the model in the context of the question, i.e., explain the effects of expansionary fiscal policy in the model. You may want to organize your answer around these three parts: A) Aggregate Supply/Output (includes a discussion of the determinant of the level of output and the effect of fiscal policy on output in the long-run B.Aggregate Demand/Real expenditures (includes a discussion of components of expenditures, their determinants, and the effect of fiscal policy on expenditures and the composition of expenditures). C. Loanable Funds Markets (includes a discussion of the determinant of the interest rate in loanable funds market and the effect of the fiscal policy on the real interest rate in the long run). Please include a graph if possible.
Suppose a perfectly competitive industry whose demand and supply are characterized by the following demand and supply functions: Qd = 180 − 2P and Qs = 10P. How many units will the representative firm produce? Taking this quantity as the average per ..
The advantages of cloud computing are demonstrated in the fact that software and hardware upgrades are minimized. Another advantage important to IT professionals and just about anyone that accesses data on computers is ___________.
Suppose Japan agreed to a Voluntary Export Restriction (VER) that reduced US imports of Japanese steel by 10%. Discuss what would be the likely short-run effects of that VER on the US and Japanese steel industries. If the restriction were permanent, ..
What technology available to produce your product suddenly improves. You should note whether the scenario indicates a shift of the curve or movement along the curve. You are a supplier of widgets.
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
Describe three features of monopolistic competition that differentiate it from monopoly. Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
q.paolo currently has 100000 invested in bonds that earn him 10 percent interest per year. he wants to open a pizza
Recall the Application about how Microsoft responds to the threat of potential competitors to answer the following question(s). Recall the Application. In an effort to deter entry into its key markets, Microsoft engages in:
q.you run a chain of movie theaters consequently you commission a marketing study about categorizes your potential
What is the equilibrium quantity and equilibrium price for the following demand and supply curves: Calculate consumer and producer surplus in this market.
What is the nomination and confirmation process for a Supreme Court justice? Make sure to discuss the individuals and levels of government involved, as appropriate. What factors can prevent a nominee from being confirmed? Here, you should reference s..
Suppose the point of tangency that characterizes long-run equilibrium for a monopolistically competitive firm occurs at Q1 units of output.
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