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We call the model of income determination developed in this chapter a Keynesian one. What makes it Keynesian, as opposed to classical?
Which of the following would be automatic stabilizers? Employment-insurance payments Cost-of-living escalators in government contracts and pensions
How can the problems associated with using static equations in a dynamic world best be dealt with? Elaborate.
Kristin Earhardt is a 26-year-old management trainee at a large chemical company. She is single and has no plans for marriage. Her annual salary is $34, 000 (placing her in the 1 5% tax bracket), and her monthly expenditures come to approximately ..
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary 5rnith20 obtained the following regression results based on the U.S. presidential elections for the four yearl..
Assume a firm wants to minimize its cost of producing y amount using x1 and x2 as inputs, which means it wants to minimize w1x1 + w2x2 subject to x1^(1/2)x2^(1/2)= y: (a) Using Lagrange multiplier method, find optimal x1 and x2 as functions of w1,w2 ..
For the last 4 months, a contract generated a net $6000 per month. Julian sold the equipment yesterday for $3000 to a friend.For the net cash flows experienced, what could Julian have paid for the equipment 8 months ago to have payback plus a retur..
a bank is offering to sell 6-month certificates of deposit for $9500. At the end of the 6 months, the bank will pay $10000 to the certificate owner. based on a 6-month interest period, compute the nominal annual interest rate and the effective ann..
For this Discussion, select a theory that interests you and that you might use to conduct research in the future. Consider your future interests with regard to your dissertation or your current or future role in public health.
Why would neoclassical economists be critical?
a nation's rate in 2003 was 5%. It accumulated capital at a rate of 5% and added to its employment of labor at a rate of 5%. The proportionate increase in real GDP in response to a proportionate increase in capital was 0.2, and the proportionate r..
a producer produces good y using a single input x according to the production function yxa where 0ltalt1. the producer
For each of the expected inflation rates of 0, 2, 4, 6, and 8 percent, calculate the nominal interest rate and the after-tax expected real interest rate if the tax rate is 30 percent. Suppose that the Fisher hypothesis holds for an economy.
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