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The U.S. economy is in a recession and the IS-LM suggests we are in a liquidity trap.
a) Illustrate the situation using the AD-AS and IS-LM diagrams.
b) Explain what a liquidity trap.
c) If the there is no monetary or fiscal policy change what does the price adjustment mechanism predict?
d) Why might this be un-desirable?
e) What would you recommend for macroeconomic policy makers in the U.S. Show the impacts graphically? What would be the downside to your recommended policy(ies)?
Why is U.S. economic growth important to the average American and what is the best way to measure standard of living of the average person: (use unemployment rate, inflation, & GDP in your answer).Does economic growth ensure all members of a societ..
You're an advisor to a newly elected President of a developing nation. This nation is under heavy corruption problems. What are some policies that the president can run to help fight this corrpution. The president himself isn't corrupt.
Recently there have been several news talking about the slowdown of production (and productivity) in south-east Asia (especially China). Answer the following questions under the following assumptions: there are only two regions in the world; the U..
When the beer arrived it was found to be flat and Paddy's rejected it. Paddy's Pub could not find another source to buy the same beer for the same price. Paddy's was forced to buy the beer from another source at $55 per keg.
Is there any relationship between U.S. dollar value and global gold market price If so, can the U.S. Fed adjust money supply to control global gold market price How A reference link (URL) to an article which supports your answer will be a plus.
Many people think of marketing as only promotion; they only look the tip of the marketing iceberg. However, marketing is much more.
The U. S. has committed itself to creating a free trade zone between the U.S., Canada and Mexico. Why might this be important Relative to imports and exports to other nations, what is the size of these two North American trading partners trade rel..
During the 1980s, the US Cingress imposed a high sales tax on yachts, figuring that the rich could afford to pay for this luxury. But so many jobs were lost in the boat-building industry that the measure was finally repealed.
When the Euro was 1st issued it hit the market at $1.17/€ on 1 Jan 2001. Calculate the Euro price of the dollar when the Euro debuted?
In 2006 the hourly cost to workers per German industrial employee was $33. The hourly expense to employers per United States industrial employee was $23.65 while the average cost per Taiwanese industrial worker was $6.38.
Nation X's production possibilities frontier is given through the following table, Further suppose that the each country is currently manufacturing and consuming at Point C on its production possibilities frontier.
The U.S. Postal Service (USPS) operates at a loss but its closest competitors - UPS and FedEx - both operate at a profit. Suggest how fixed costs have contributed to the situation of the USPS. Provide support for your response.
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