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Compare and contrast monetary and fiscal policy in the context of an economy experiencing a recessionary gap. What are the policy options of each and how does each policy work? What are the advantages and disadvantages of using either monetary or fiscal policy? After your general discussion, recommend a specific, detailed policy for addressing the current recessionary gap. Use an AD-AS diagram (draw and scan or create on your computer) to show the short run and long run effects of using the policy you chose.
Debt reduction vs. stimulus for economic recovery during a recession: What are your recommendations to the current administration considering the state of the economy and the level of national debt? What are the implications of your recommended course of action? Use an AD-AS model (draw and scan or create on your computer) to illustrate the effects of such a policy during a recession. Cite readings and/or presentations to support your comments.
Keynes vs. Hayek: What are their perspectives on the role of government in the economy? Whose theories do you think are more useful in the current economic situation? What implications does the theory you chose have for individuals, communities, and the aggregate economy? Cite readings and/or presentations to support your comments.
Explain how will these events impact the equilibrium price and quantity of generic soft drinks.
Get price level stability under these conditions the government should:
Describe why some workers are more likely than others to be laid off or have a harder time finding another satisfactory job.
If the price changes above occurred for all goods across the economy during the four year period, elucidate how nominal GDP and real GDP would differ.
Select an economy that initially has a labor force of 2000 employees. Of these employees, 1900 are employed and each works forty hours per week. Ten units of output are produced by each hour of labor.
Now assume that an unusual shift of the Gulf Stream leads to an unseasonably cold summer in Europe, destroying much of the grape harvest there.
Bright Future, Ltd (BF) is a non-profit foundation providing medical treatment to emotionally distressed children. Determine the optimal amount of service provided by BF.
What is the income elasticity? Interpret the elasticity in a mathematic and economic context -- what does this number tell you? Is the own price elasticity consistent with economic principles? Explain.
Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
Illustrate an advantage of each strategy and under what conditions you might use each. How do market prices differ between perfectly and imperfectly competitive markets.
gap among the most highly skilled in the population and the least skilled will begin to fall in the near future.
Tom earns $15 per hour for up to 40 hours of work each week. he is paid $30 per hour for every hour in excess of 40.
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