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A hypothetical closed economy has a national income model of the form y=C+I+G where C=30+0.8Y and I and G and private Investment expenditure are exogenously determined to= 50 and 80 units respectively. Compute the national equilibrium level of income for this economy using aggregate income equal aggregate expenditure and withdrawals and equal injection methods
If the money supply is growing at a rate of 5 percent per year, real GDP(real output) is growing at a rate of 2 percent per year, and velocity is growing at 2 percent per year instead of remaining constant, what will the inflation rate be? (Enter ..
1. Calculate the inflation rate for the following time periods (use the CPI data on WWW.BLS.GOV) or Simply click on this link
If a country wants to keep its exchange rate from changing, it must give up some control over its money supply. Is this statement true, false, or uncertain? Explain your answer.
Do you think we, as customers will be more price sensitive also price conscious. What do you think this means for luxury goods.
Describe the inflation trend based on inflation rate. Define inflation and describe the typical causes of inflation. Research and identify the cause(s) of inflation in the chosen economy.
In the context of external sector problems, what case can you build for the formation of common markets among LDCs?
Refer to the data in the above scenario. What is the size of the labor force in the United States for the given year? Refer to the data in the above scenario. What is the unemployment rate in the United States for the given year?
Every year the typical family on Planet Econ consumes ten pizzas, seven pairs of jeans and 20 litres of milk.- Between 2002 and 2003, a typical family's cost of living:
How will an expansionary monetary policy affect the GDP when the economy is at less than full employment? At full employment?
The Law of Demand states that the demand for a product is inversely related to the price of such product. Therefore, the demand for a product is considered downward sloping. This implies that quantity demanded increases when price decreases. Is this ..
When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
Determine what factors might contribute to a low level of productivity in an economy and compare these to rapid productivity growth experienced through the US during the 1990s.
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