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According to the IS-LM model, what happens to the interest rate, income, consumption, and investment under the following circumstances? Support your answer with suitable diagrams.
a) The Central Bank increases the money supply.
b) The government increases government purchases.
c) The government increases taxes.
d) The government increases government purchases and taxes by equal amounts.
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
Clarify why you chose this agency as well as what the impacts to you have been. Do you consider the impact to be positive or negative.
The following equations describe a small open economy. Calculate the equilibrium level of output (Y*).
Who is most likely to be earning economic rent?
Describe the Lucas critique. Why might the level of government debt affect the government's incentives regarding money creation?
Distinguish between the resources market and the product market in the circular flow model.
Comment on the following statement: “The free market allows hospitals to enter markets too easily; and regulators can potentially improve social well-being by restricting entry.”
Compute total revenue, total cost also profit at each quantity. Illustrate what quantity would a profit-maximizing publisher choose. Illustrate what price would it charge.
The first cash flow of a 25-year series of quarterly cash flows is equal to $35,000. Each cash flow in the series increases by $800. Find the amount of each cash flow in an equal quarterly cash flow series that is equivalent to the increasing cash fl..
The competing concepts under which organizations have conducted marketing activities include: the production concept, product concept, selling concept, marketing concept, and the societal marketing concept. Identify examples of companies (preferably ..
Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth?
You read in a business magazine that computer firms are reaping high profits. Assume that the computer market is perfectly competitive.
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