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Use the aggregate expenditure model developed in this chapter to explain the following statements:
a. Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146.70 points Friday to close at 11,893.69.
b. Administration officials said they were confident conditions would improve as tax rebates that are part of the recent $152 billion economic stimulus package begin to reach consumers.
c. The Fed is expected to cut interest rates again to prop up the economy.
If the gini coefficient falls from .40 to .20
What happens to each of these values if the central bank changes the reserve requirement ratio to 3%.
Place the words "FOMC meeting 2009" in the search section of the site. Elucidate the consequences of such a decision on the economy.
How did Neoclassical economists rationalize a policy of laissez faire with respect to the potential intervention into a market economy by government? Why do modern economists, on the other hand, acknowledge a role for government? Pareto’s definition..
Identify the four major tools of monetary policy. b) Describe how changes in the Fed’s major policy tools leads to [1] expansionary and [2] restrictive or contractionay monetary policies.
Visit the Fed's Summary of Commentary on Current Economic Conditions, also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.
1. What are the growth promoting policies prescribed by neoclassical models? 2. What are the growth promoting policies prescribed by new growth models? Give me the good explanation.
What data the organization needs in order to make good decisions and how the use of macroeconomic indicators enables organizations to improve their forecasts of the key decision-making data.
What is the marginal product of the second employee. What is the marginal revenue product of the fourth worker.
Explain how does monetary policy work to close an inflationary and recessionary gap using the keynesians model and what is the link.
Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about Explain how irrelevant class was, commenting that he saw no useful purpose for economics.
what are the examples to producers take advantage of the internet to implicitly fix the prices
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