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Q. T Expansionary fiscal policy: increasing budget deficit (G or T) usually in a recession. Contraction fiscal policy: decreasing budget deficit (G or T ) usually in an economic boom. If government spends more than it brings in in taxes, what happens?
Q. Now looking at this scenario, would company rather increase wages slightly, not so much that it will decrease profits, but to a point where productivity may rise higher than what was originally given to employees?
Illustrate If G rises to 200 and T rises to 150. How much would the GDP change as a result.
Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling.
According to national income accounts, investment always equals savings in a closed economy. only in equlibrium would savings be equal to investment. hence, we are always in equlibrium. true or false.
Elucidate how events such as the World Trade Center and Pentagon attacks described in the case study affect the aggregate demand curve.
This might be interpreted as an upward shift in the consumption function. How does this shift affect investment also the interest rate.
From what you know about these firms' cost structure, what is the highest possible price per unit that could be existing as the market price in the long run equilibrium.
Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.
Describe the equilibrium price and quantity, producer surplus and consumer surplus.
Receive full credit for this question in previous attempt. Illustrate what level of excess reserves does the bank
Do you think this particular budget cutting policy helpful to curb the growing budget deficit.
Illustrate what are the effects of awards paid to heirs of workers judged to have been worked to death in Japan on wages
illustrate what is the profit maximizing quantity that should be offered to Group B
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