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B2. Suppose that consumers become pessimistic about the future health of the economy, and so cut back on their consumption spending. What will happen to aggregate demand and to output? What might the government have to do to keep output stable?
B3. Why and in what way are fiscal policy lags different from monetary policy lags?
B4. Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve.
B5. Suppose that the economy is at an inflation rate such that unemployment is above the natural rate. How does the economy return to the natural rate of unemployment if this lower inflation rate persists?
Illustrate what methods does Rakuten use to make it easy for a small or medium size business to use its shopping platform.
Suppose a firm operates as a price taker in a perfectly competitive industry. The firm’s Total Cost function is given by TC = a + bQ +cQ2. Therefore the firm’s marginal cost is given by b +2cQ. Find an expression for the Breakeven Price.
Suppose that the tax rate on the first $10,000 income is 0; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $30,000; and 40 percent on any income over $80,000.Family A has an income of $40,000 and Family B has..
What are the risks and opportunities of the strategies followed by Pepsi? of Coca Cola? 3.) How would you respond to Coca-Cola's change in sales policy? How would you ensure Pepsi's board that this response will allow you to remain competitive and..
What is the present worth of a $50,000 municipal bond that has aninterest rate of 4 percent per year, payable quarterly? Thebond matures in 15yrs , and the market interest rate is 8 percentper year, compounded quarterly.
Find all pure-strategy Nash equilibria in the game below. List each Nash equilibrium in (Player 1’s Strategy, Player 2’s Strategy) form.
In a multiple regression model using 310 students to explain college grade point average, the following explanatory variables are initially included in the regression: high school GPA, ACT score, number of credits completed, mother's years of educ..
Illustrate what is the practice by a monopolist of charging each buyer the highest price.
If the price of a hardback novel increases from $25 to $30 and quantity demanded falls from 60,000 to 30,000 in response, what is the coefficient of price elasticity of demand using the simplest definition of price elasticity? a. 0.25 b. 1 c...
Explain how the two economies respond differently to a boom and to a slump. What are some factors that might influence the slope of the Phillips curve? Do you think the slope of the Phillips curve has changed over time in the U.S. economy? Consider..
Why do you suppose the federal government gives special treatment to owners of fertile farmland rather than, say, automobile mechanics?
1. according to the textbook natural scientists often conduct research via controlled experiments whereas
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