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Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements. No more than two (2) references can be cited. All essays with be scanned through a Plagiarism program.
Part A
1. Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1) reason.
2. Explain why depositing cash into a checking account does not change the money supply. Provide one (1) supporting fact.
3. Explain why the money supply does not change when one individual writes a check to another. Provide one (1) supporting fact.
Part B
1. Describe one (1) reason why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and one (1) reason why the flexibility of wages and prices tend to favor the classical economic view in the long run.
2. Refer the figure below and explain what happens in each graph (A, B, and C) when an economy is moving from a recession (point a) back to full employment.
Supply-side economics, during President Reagan’s administration, involved the supply component of the supply-demand equation. stressing the importance of tax cuts for businesses.or else.
It may be borne in mind which demand plays a pivotal role so far the determination of equilibrium composition of output is concerned.
Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences mana..
Compute the long-run impact of a permanent rise in money supply versus a permanent tax cut.
The Hanover Manufacturing Company believes that the demand curve for its product is P = 5 - Q-Evaluate the wisdom of the firm's pricing policy
Write down to one paper on John Maynard Keynes the paper will follow proper MLA format and bibliography.
Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishing returns have on short-run costs? Be specific.
The government decided to tax a monopolist at a constant rate of $x per unit. Show the inpact upon output and price. Is the posttax equilibrium closer to or further from the ideal equilibrium of P= MC?
Under what circumstances, and why, would the government be opposed to a merger of two firms? How does the Justice Department decide which mergers to challenge?
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Minuteman Manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating cost by $80 per hour of use and the upgraded equipment will be used on average 7 hours per day, what is the expected annual savings.
travel, or home improvement projects. For the sake of analytical tractability we will measure vacation travel, T, in units of four-day trips, and we will measure home improvement, H, in units of two-day projects, but we will also assume that Pat c..
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