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1 Carefully describe and show graphically how each of following changes would effect the shape of the IS curve:a) The MPC becomes bigger.b) Investment becomes more sensitive to changes in the real interest rate.
2 In the State of the union address in January 2002, President Bush announced that he would ask Congress to approve substantial increases in defense spending to counter terrorism and significant reductions in taxes. Show:a) The short-run effects of his policy on aggregate Expenditure curve and the equilibrium level of GDP.b) What the effects would be on IS/LM curves.
Discuss the information-gathering techniques and design methods you would propose to use for the project.
Elucidate as accurately as you can how each of the following individuals which would be affected by unanticipated inflation of 10 percent per year.
Draw a diagram describing autarky and a pattern of comparative advantage for your example.
Explain when is equilibrium achieved in the foreign exchange market. Why is foreign exchange hedging beneficial to an organization.
Write down the relationship between savings, capital formation, and consumption.
You are a pricing manager at Argyle Inc. - a medium-sized firm that recently introduced a new product into the market. Argyle's only competitor is Baker Company, which is significantly smaller than Argyle.
Exchange and markets, Demand supply and market equilibrium
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
the comparison of the percentage of change in the one variable divided by the percentage change in the other variable. An analytical technique utilized to show best case scenarios of demand and supply curves.
Differentiate among movement along and shift of the demand curve. Explain the relationship between market and aggregate supply and demand.
Refer to the above data. If the product price is $95, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss?
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