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Can you relate the Classical and/or Keynesian macroeconomic models to assumptions about economic behaviors and to economics policies being implemented in the U.S. economy today? Is there anything that you've learned studying these models that gives you a better understanding of why the Obama administration's economists requested Congress to approve the "stimulus package"? Is there anything that you've learned studying these models that gives you a better understanding of alternative proposals that have been set forth for economic growth (or criticisms of the current policies)?
Note: Please do not just post an answer to each of the questions. These questions are to get you started in your discussion—to make you think. Use one or two of them to get yourself started in relating the models to current economic policies.
The Solow growth model predicts that the GDP per capita of countries with similar technology and savings behaviour will converge over time. To test this theory a researcher examines the growth of G7 countries, fails to reject convergence, and conclud..
Which of the following situations is one in which the Fed will potentially pursue expansionary monetary policy?
Discuss the importance and explain the use of business process modeling notation (BPMN).
Suppose an individual faces employment risk of the following form: Her employment is subject to business cycles in which she faces the risk of a layoff with probability 10%. When she is employed, she receives an income of $100. She earns nothing when..
Policy analysts in the Department of Natural Resources have estimated that the marginal benefits from water pollution abatement are given by the function MB ¼ 0.90 À 0.03A, where A is a measure of the abatement intensity. Industry experts have estima..
Suppose the firm A&B is a monopolist. What is the profit-maximizing price and quantity? How much profit does the firm collect? How much consumer surplus does the firm generate? What is the deadweight loss? Suppose consumers cannot see the differences..
Explain the conditions under which a natural monopoly would emerge. Why are natural monopolies often regulated by the government?
What a man needs to help provide a college education for his young daughter. He can afford to invest $800/yr for the next four years, beginning on the girl's fourth birthday.
Explain how banks are financial intermediaries. What are reserves? What are excess reserves? Explain how the Fed can affect the quantity of excess reserves in the banking system. Your response should be at least 75 words in length.
Why is market demand the result of summing individual demand curves horizontally as oposed to summing them vertically?
The market demand is P=100-1.5Q and marginal & average costs are constant at 10 (MC=AC=10) find the monopoly price and quantity. Find the perfect competition price and quantity. Calculate profit, social welfare (consumer and producer surpluses), and ..
Assume that the marginal propensity to save increases. If the Fed wants to keep the level of output from fluctuating, should it undertake open market purchases or sales? In your answer discuss how the composition of GDP is affected.
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