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Consider the following statement: "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working." Which of the following could have caused this phenomenon?
A. Increase in government spending that shifted the aggregate demand curve to the right.
B. Increase in money supply which lowered interest rates and shifted the short-run aggregate supply curve to the right.
C. Economic agents revising their expectations on price level resulting in the short-run aggregate supply curve shifting to the left.
D. Expansionary fiscal and monetary policies that shifted the long-run aggregate supply curve to the right.
Identify and explain the means by which the Fed can affect the money multiplier. How do changes in policy carry through to the economy and compare and contrast expansionary and contractionary monetary policies.
Suppose that a competitive firm long-run supply curve is given by the expression QF = -500 + 10P. Does this mean that the firm will supply -500 units of output at a zero price? If so, what does output of -500 units mean?
Carlton Corporation, a manufacturer of electronic equipment, determine the following relation between its marginal cost of production output:
In Africa, this is unknown; children are almost all cared for by relatives. How would this difference affect comparisons of GDP per person?
If the market doesn't provide a good or a service that would bring large social gains, do you agree that the government should have an obligation to provide
Tim receives a portion of his income from his holdings of interest-bearing government bonds. The bonds offer a real interest rate of 4.5% per year.
If Congress put a quota on foreign video games, then - If Congress removes all tariffs on Chinese products in response to a new free trade agreement with China, then.
If a corporate bond paid 9% interest, and you are in the 28% income tax bracket, what rate would you have to earn on a general obligation municipal bond of equivalent risk and maturity in order to be equally well off. Given that municipal bonds ar..
Select a (domestic) public limited company of your choice which has some degree of market power. In an essay of 2400 words or fewer, evaluate the pricing strategies it employs for its core product/business in order to increase its market share and p..
You are given the following information about the personal computer (PC) industry: Find the NRP and the ERP. Show all calculations and formulas.
Cathy has one year left before she completes her degree in industrial engineering. She is spending this summer working for her family's firm, MMM (Molehill & Mountain Movers). MMM runs a fleet of heavy construction equipment and sells gravel for r..
A producer in a perfectly competitive industry has a cost function described by TC(q)=1000+6q+0.2q^2. If the market price is 40 and it has already committed to paying the fixed cost, what is the maximum profit for the producer?
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