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Determine how the following affects the slope of the output demand curve, and explain your results:
(a) The marginal propensity to consume increases.
(b) The intertemporal substitution effect of the real interest rate on current consumption increases.
(c) The demand for investment goods becomes less responsive to the real interest rate.
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
Assume that raising the marginal income tax rate raises $200B which could be spent on infrastructure projects. Explain how would we measure the cost of the project to determine whether it is worth undertaking.
Illustrate what might you consider to be your "fixed factor". Illustrate what alternative decisions might you be able to make in long run.
Visit the Fed's Summary of Commentary on Current Economic Conditions, also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.
If the cost of plaster and labour is $9 per gnome, what is the lowest price of gnomes at which there is a positive supply in the long run? (Remember that in order for there to be a positive supply in the long run, producers need to get their money ba..
The maintenance foreman of a plant in reviewing his records found that maintenance cost on a large press had increased with sales of a product that will decline in the future.
Suppose that velocity is constant at 10, but the nominal money supply increases from $1.1 to $1.21 trillion. Elucidate what must happen to nominal output.
The Great Inflation affected the banking industry through the following channel(s).
q1. write the economic analysis section of a business proposal. this will include statements about the market structure
Assume you are compiling your research report. How would you present the statistical information within this case to the IndustryWeek decision maker, the manager who must decide whether or not to continue to publish reader service cards?
Is technology the critical driver of globalization? What is the nature of this argument conceived by: liberalism, mercantilism, and Marxism?
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP. Why might the rate at which the Aggregate Supply curve shifts ver..
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