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About the keynesian model:
Question 1. In the new Keynesian model, the price charged by each producer can be sticky. Would you please explain the reason?
Question 2. In the new Keynesian model, an increase in money supply leads to a higher output. Would you please explain the reason.
Economists classify production functions as possessing constant, decreasing or increasing returns to scale. Yet, from a cause-and-effect point of view, it is not readily apparent why decreasing returns to scale should ever exist. That is, if we du..
a. What is the value of the government spending multiplier in this case? b. Given the size of the multiplier, what would be the implied change in income (gross domestic product) from the stimulus spending of $500 billion?
Which county has an absolute advantage in the production of fruit? Timber?
explain your thinking to demonstrate your understanding of economic terms and concepts relevant to your answer.write
If government imposes on the firms in a polluting industry penalties(taxes) that exceed the actual value of the damages done by the pollution, the result is an inefficient and unfair imposition of costs in those firms and on the consumers of their..
Greta starts an internet-based grocery delivery service. His employees must perform one of three activities: Administrative work: Exactly 2 workers are necessary to perform the administrative work for the business to operate. The administrative wo..
How would a low-cost price leader enforce its leadership through implied threats to a rival? Provide at least one example of such a strategy?
Demand or supply falls. New price the consumers are ready to pay. Quantity still same. Demand/supply is new equation is given. Producer surplus
Under what economic conditions would expansionary or contractionary fiscal policy be used? What would be the effect on the Federal budget?
It is May 1. You have just bought $2000 worth of furniture. You will pay for it in 24 equal monthly payments starting at the end of May next year. Interest is 6% nominal per year, compounded monthly. How much will your payments be? Using compound int..
Define what is The gratification received from the consuming the next unit of a good?
What does it mean for two goods to be "perfect substitutes" for each other for a consumer Why is the optimal bundle usually a corner solution when a consumer is choosing a bundle of perfect substitutes
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