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Answer whether the following statements are true or false, explaining your answer in each case.
A. Gross national product at current prices is a measure of real economic activity.
B. The Keynesian model suggests that output is mainly demand-determined.
C. Unplanned inventory changes are the signal to firms that there is disequilibrium.
D. The multiplier in our simple model tells us how much output changes when aggregate demand shifts
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
Select any low income country (or countries) on which you can find data on the following (a web search should yield you the required information)
Macroeconomics questions, discuss the short-run and long-run effects, Keynesian model, Distinguish between ongoing demand pull and ongoing cost push inflation.
Describe the effects of monetary policies on the economy's production and employment.
Explain how each of the following would cause the yield curve to shift if between now and next year:
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are:
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Using the IS/LM model, demonstrate the effect of each of the following changes.
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
With the help of an AD-AS diagram, explain the effect on the price level and real GDP. Use an upward sloping AS curve and be clear about the interconnections among markets.
Suppose the Federal Reserve lowers its target for the federal funds rate six times in seven months while the European Central Bank leaves its target for short term interest rates unchanged.
Suppose that in a city there are 100 identical self-service gasoline stations selling the same type of gasoline.
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