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You are the President of the United States and the economy is going into a recession. What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
One of the major issues in macroeconomics is disagreement in debate over policy activism vs. policy rules. What exactly is that disagreement?
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). Using graph paper, please graph AVP, MVP, and MFC
Explain how would you go about resolving the issue if you were the president of a small, poor country.
The Bureau of Labor Statistics reported and total number of unemployed workers.
Would you assume this as an externality, and if you do, what would you suggest be done about it.
Describe supply and demand, major reason(s) for the price increases and fluctuations, and international factors, if applicable. You should use at least four references.
Suppose the simple spending multiplier equals 10. Estimate the size and direction of any shifts in the aggregate expenditure line, the level of real GDP demanded,
Using the static classical AD/YP model, demonstrate the effect of each of the following changes.
Price elasticity of demand is constant if the slope of the demand curve is constant, terms of quantity changes and price changes
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
The high employment deficit is estimated at $100 billion. Suppose that the ecomony is operating below full employment and that it will not overheat during year,
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