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1. What is Keynesian economics? Explain how policymakers used Keynesian economics in response to the Great Recession. Be sure to include discussion about the types of fiscal and monetary policies that were used.
2. What is a long-run consequence of running persistent budget deficits? Why is it a problem? Provide reasons from the textbook or reasons discussed in the (2008) movie, I.O.U.S.A.
3. If conventional monetary policy can no longer lower interest rates, what option(s) does the central bank have to stimulate the economy? Provide an example of the Fed's actions listed in the textbook or from the October 30th FOMC press release.
4. If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the aggregate price level? Explain why it is important to insulate central bankers from political pressures in their conduct of monetary policy.
If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, illustrate what combination of the three products should be purchased in order to maximize utility.
How much is equilibrium level of income or output if Fed decides to set the rate of interest at 10 percent (r=0.10).
Discuss how the Federal Reserve kept the United States from sliding into a deeper recession after September 11, 2001.
Assume Bank A, which faces a reserve requirement of 10%, receives a $1000 deposit from a consumer.
As with this data how could you make the cost benefit test to tell if at a given percentage level abatement is effiecient.
What is the hypothesized elasticity of demand for one product/service that is produced by the company (or a product/company you are familiar with)?
Which nation should specialize in the production of Good X and which country should specialize in the production of Good Y.
How would market forces affect the amount of time the proven oil reserves will last, assuming no new oil reserves are found and that the demand curve remains unchanged?
Assume Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import.
Identify whether the subsiquent issues are macroeconomic or microeconomic and explain why you categorized them in that way.
If the saving rate does not change, but the population growth rate rises, what will happen with Avataria's GDP per capita What will happen with its GNP per capita How do these results contrast with the Solow model presented(b) Now assume that the..
Explain why is it important for a country to calculate their GDP and release this information to the public.
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