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Final Exam.docx
Part A) What is ‘Classical Dichotomy'? What is the neutrality of money? Are the two related? If so,how are they related? What are the major economic and political conclusions of ‘Classical Dichotomy'?
Part B) Do Classical Dichotomy and Neutrality of money exist in the Keynesian model? (Use the AD-AS or IS-LM models for the purpose of analysis). How do the economic and political conclusions of the Keynesian model differ from those of the classical model on account of this? Explain your answer in detail.
[Hint: Explain the major changes in assumptions about the labour and money markets that lead to the lack of existence of the classical dichotomy and money neutrality in the Keynesian model and how they relate to economic and political conclusions of the Keynesian model]
Presume that you were offered $3000 to be delivered in one year and presume that you had an alternative of putting money into a CD paying annual interest of 10 percent. Would you pay $2800 now in exchange of that $3000 in one year?
1) Every society faces economic tradeoffs. This means a. producing more of one good means less of another good can be produced b. not everyone can have enough goods and services to survive.
Describe why government regulation is required, citing the major reasons for government involvement in a market economy.
Suppose Debbie purchases only hamburgers. Assume that her marginal utility is always positive and diminishing. Draw a graph with total utility on the vertical axis and the number of hamburgers on the horizontal axis. Explain how you would determin..
The aggregate demand and supply models to analyze the causes and why they led to the inflation and/or unemployment.
The irony is that those who are aware of the Pareto principle, do not use it as often as they should in making decisions. Name at least a dozen ways to apply the Pareto principle (the 80/20 rule) that have not been thought of regarding decision-ma..
How does the U.S. economy compare with other market capitalist economies with respect to its degree of industrial concentration and the nature of its antitrust policies?
Dome Metals has credit sales of $180,000 annual with credit terms of next 60 days, which is also the average collection period. Suppose the firm adopts new credit terms of 3/18, net 60 and all customers pay on the last day of the discount period.
The Florida Game and Fish Commission desires to compare the amounts of residue from three chemicals found in the brain tissue of brown pelicans. Independent random samples of ten pelicans each yielded the accompanying results . Is there evidence ..
ssume you are a policymaker in washington dc. lobbyists for the preschoolers of america have put pressure on their
publishing house uses 400 printers and 200 printing presses to produce books. a printers wage rate is 20 and the price
write a proposal of no more than 750 words outlining the research approach you will use for your strategic plan.
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