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If an autonomous decrease yields a new PAE expression, PAE = 195 + 0.6Y, find equilibrium and graph it on a Keynesian cross diagram and find the multipler. Please explain.
Given the above information that the US CPI = 235, UK CPI = 215, and the current nominal exchange rate = .85 pound per dollar, what does the Theory of Purchasing Power Parity predict the nominal exchange rate to adjust to? Enter your answer in pound(..
In anticipation of a major hurricane hitting the Gulf Coast, the quantity gasoline of sales rise from 360 million gallons to 375 million gallons. Based on this information, what is the percent change in gasoline sales?
Assess the role of the Federal Reserve in mitigating the negative impact of the 2008 financial meltdown on the economy.
What is meant by marginal analysis, and how is this related to the objective of efficiency for a society’s allocative choice.
Monetary policy can be used for contractionary or expansionary purposes just as we learned that fiscal policy could. Can you help me figure out when/how we would want to use expansionary monetary policy and when/how we would want to use contractionar..
q1. identify at least one important entrepreneur that you would consider an entrepreneurial legend and state why you
Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min{3/2M,C}. Coffee costs $2/oz, milk $1/ oz. (For the questions below, show your work briefly) How much coffee and how mu..
In general, explain the connection between a Happiness or Utility function that exhibits Diminishing Marginal Utility or Happiness, on the one hand, and risk-aversion, on the other.
What are the issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between)?
Show long run effect on In Phillips curve diagram. If expectations are rational and increase in money growth is announced, what happens to In short run.
If a transaction imposes external costs, then: A) too much is being produced relative to the socially optimal amount. B) Production should be increased to generate enough profits to cover those costs. C) all production of the good or service should c..
Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy should the U.S. take measure to ensure that the dollar retains its dominant role ..
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