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An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap-inflationary or recessionary-will theeconomy face after the shock, and what type of fiscal policies would help move the economy back to potential output?
Using knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?
The following table provides data about the economy in Argentina. Column A is the year, Column B is real GDP in billions of 2000 pesos, and column C is the price level.
Which of these is most likely favored by both management and labor? An increase in wages or Cutbacks in health coverage due to rising health care costs
A decrease in government spending will cause a(n) increase in the quantity of real domestic output demanded. decrease in the quantity of real domestic output demanded. decrease in aggregate demand. increase in aggregate demand.
explain what will happen to real wage rate The real wage would decrease since there would be a larger working population. The real wage would increase as productivity increases.
Miller, R.L. (2012). Economics Today, 16ed. Addison-Wesley. p. 295. In today's economy what fiscal policies would you implement? Right now our economy is in a recession, as a Keynesain Economist, how would youl manipulate fiscal policy to improve ..
Determine the economy current stage in the business cycle and support your answer with an article written within the last week from popular press or blog.
Find the marginal utility functions of the following utility functions: Plot the marginal utility functions. Indicate which of these functions appear to exhibit diminishing, constant or increasing marginal utility? 1. u(x,y) = 3x + 2y
Discuss how absolute advantage and comparative advantage differ? Kyle can read 20 pages of the economics in an hour. He can also read 50 pages of history in an hour. He spends 5 hours pre day studying. Draw Kyle's production possibilities fron..
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
According to an article in BusinessWeek Online, the company is not only the world's largest shipbuilder but also manufactures other industrial goods ranging from construction equipment and marine engines to building power points and oil refineries..
Decide if the values of the goods produced are included in the 2006 GDP and explain your reasoning.
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