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1. What shape did the short-run aggregate supply curve have during the 1930s, according to Keynes? Explain2.What is the multiplier? How is it calculated? Why is the multiplier related only to consumption spending?3. What are the macroeconomic consequences of a budget deficit when the economy is operating at full employment? Be sure to discuss the effects in the short run and long run.4.Suppose that the Fed purchases $1 million in bonds in the open market. Explain how the money supply can increase by more than $1 million.5.What happens to the price of bonds when the Fed sells bonds? What happens to the interest rate? What happens to the money supply?
If you hold shares in a corporation and management decides to plow back the company's earnings some year instead of paying dividends, what are the advantages and disadvantages to you
If she apportions some resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points. If James devotes all his resources to growing potatoes, he can raise 80 pounds of potatoes per y..
Desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 10 -500r. Real money demand is Md/P = Y - 2000i. Other variables are πe = 0.05, G = 200, = 1000, and M = 2100.
Calculate John's maximum daily profit and what is John's supply curve? Mathematically represent and then explain.
Provide two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
The Pension Benefit Guaranty Corporation (PBGC) is a government agency that absorbs pension obligations when a company goes bankrupt or otherwise cannot fulfill its pension obligations to current or former employees. Where is the moral hazard in ..
Dsecribe a complete business cycle (trough, peak, expansion, recession), focusing on what happens to output, investment, employment in each phase.
Analyze the three different money models (the ATM model of demand for cash, the liquidity-preference model, and the dynamic model of money) to determine which model seems most appropriate for explaining the way money works to someone.
As a result of increased tensions in the Middle East, oil production is down by 1.2 million barrels per day-a 5 percent reduction in the world's supply of crude oil.
Describe verbally the effect on wage rates and employment. Adjust the graph you drew for question 3, showing the monopsonistic wage rate and employment level as W2andQ2, respectively.
Draw a budget constraint and an indifference curve for an individual who works in period one and is retired (earns no income) in period two. He consumes some of his income in period 1 and saves the rest of his income for period 2.
"The laws of supply and demand andicate that higher prices are ineffective in reducing smoking. In particular, higher cigarettes prices willn reduce the demand for cigarettes. This reduction in demand will push the equilibrium.
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