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Suppose a stock market crash makes people feel poorer. What are the effects of this decrease in wealth?
a. a decrease in consumption, which shifts aggregate supply left
b. a decrease in consumption, which shifts aggregate demand left
c. an increase in consumption, which shifts aggregate supply right
d. an increase in consumption, which shifts aggregate demand right
Explain how the MAS have successfully used exchange rate policy to achieve price stability for the last two decades.
Demonstrate how growth accounting could be utilized to learn the value of g. Analyze the effects of an unanticipated permanent reduction in g on the real income rate also the real interest rate.
q.as an analyst at the treasury department you have been asked to predict the behavior of key macroeconomic variables
q. consider a market where demand is p10-2q and supply is pq2. there is a consumption positive externality of 2.5unit
Two identical countries, Nation A and Nation B, can each be described by a Keynesian-cross model. MPC is .9 in each nation. How much is government purchases multiplier for each nation.
Show the effect of a 50 percent tax on interest income assuming the substitution and income effects cancel each other out. Compute and label all relevant values in your graph.
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
Under what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger Herfindahl-Hirschman index of 2,900 if the postmerger index is expected to increase by 225.
q1. following the passage of comparable worth legislation unity college responds by placing salaries at w a between the
If the largest four firms in an industry control less than half the market, their competitive concentration ratio. which of the following typically leads to two formally separate firms being under common ownership? Since the Margaret Thatcher era of ..
Develop hypothetical supply and demand schedules for your good or service. Plot the schedules onto your graph and label the curves with D for demand and S for supply.
If offered the choice between a 10 percent increase in her hourly wage rate, which would Helga choose? Assume that she is free to choose her hours of work.
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