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Suppose that survey measures of consumer confidence show that a large wave of pessimism regarding the future performance of the economy is sweeping the country. Likewise, U.S. stock price indexes (the Dow Jones Industrial Index, the S&P 500 Index, and the Nasdaq) are all falling rapidly. 1. If, in the short run, policy makers do nothing, what will happen to U.S. aggregate demand and what especially would we expect to happen to the "Personal Consumption" and "Domestic Private Investment" components of U.S. aggregate demand? Explain.
2. What, again in the short run, should the Federal Reserve do if it wants to stabilize aggregate demand? Please be specific in your discussion of the specific policy tools that are available to the Fed.
3. If the Fed were to do nothing, what might the U.S. Congress do to stabilize aggregate demand? Again, please be specific.
4. If both the Federal Reserve and the Congress were to do nothing, what could the President do to stabilize U.S. aggregate demand?
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
The central coordination problems are focused primarily around the distribution of goods only, not the production of goods. Production possibility curves are generally bowed outward because marginal opportunity costs generally increase as more of an ..
Manning only consumes goods X and Y. His marginal utility from consuming good X is 4, and his marginal utility from consuming good Y is 5. If the price of X is $6, the price of Y is $8, and Manning's income is $48, how much of good X will he purchase..
The relationship between the less- developed- countries and the developed countries in the evolution of international trade has always been a bit strained. Discuss this relationship, including policies adopted and /or advocated by each group to "help..
q1 case studyon the advice of some of its wealthiest alumni clare college has borrowed pound15m on a 40-year inflation-
1. explain why relatively flat as opposite relatively steep labor demand curves are more consistent with the empirical
Determine what changes (if any) in the relative proportions of labor and materials are needed to operate efficiently
How much is the per-unit tax on cigarettes and what price do consumers pay after the tax - how much tax revenue is collected?
Markets in developed economies are approaching saturation level. Therefore, MNCs are searching for new untapped markets in emerging countries such as India and China.
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bull assume that you were recently hired by a marketing research company.bull you are assigned to a research team to
please answer all 3 questions using apa 6th edition format style site any paraphrasing or quotes that are used in the
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