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1. Draw a real expenditures curve on a graph showing a recessionary gap. Explain what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
2. Draw a real expenditures curve on a graph showing an inflationary gap. Explain what happens to real GDP when it is initially to the left of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
3. Explain with the aid of a graph why a "self-correcting" recessionary gap cannot be relied upon to bring an economy out of recession.
Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
If the government imposes a tax on the production of cars, which of the following will occur in the market for cars.
Select one market segment, and describe in one or two paragraphs what features the cell phone might have in order to be attractive to this segment.
Although firm expects the order to be of 6 units, determine the minimum average cost of the firm with these different order sizes.
Economists argue that the move from barter to money increased trade and production. How is this possible.
China has continued to lag well behind the rest of the world in information technologies
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
In which directions are they pushing or pulling the U.S. economy. Also, do you think the gap between real GDP and potential GDP will widen or narrow.
How would a law preventing landlords from charging above $900 give different results. What is such a price restriction called.
The government plans to rise state spending by $2bn in the next fiscal year.
On the same day, the San Francisco Chronicle had an article with the headline "Sharp Drop in Bay Area Home Sales"
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