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In economics we always talk about the terms, Short Run (SR) and the Long Run (LR). In fact these terms are also applicable all of us in our lives as well. Keynesian economics is based on the premise that we can move economy upward or downward with manipulating or influencing the individual components of national income or aggregate demand using appropriate monetary or fiscal policies. Instruments of monetary policy include manipulating interest rates by changing the nations money stock and the fiscal policies. For example, personal consumption can be manipulated via changing tax rates and government expenditure can be changes by an act of congress.
What are the basic fundamentals of Keynesian economics?
Suppose that you are holding US currency (denoted by USD) and are planning a trip to visit either Brazil or Bolivia. To assist in computing the currency conversions, create a VI that uses the currency exchange rate for the Brazilian Real (denoted by ..
Assume that in Babilonia no one is born or dies, but just spend their life either out of the labor force, or in the labor force and unemployed, or employed. Assume crucially that these percentages are unchanged, year after year. What are the steady-s..
If the Ministry of Environment imposes waste dumping tax on the steel company, show the effect of the demand and supply of steel;
Suppose the utility granted by spending holidays domestically D and holidays in foreign countries F is represented by the utility function u(D,F)=10D*F. You have a budget of 4000 US-Dollars and a domestic holiday costs you 100 US-Dollars per day and ..
From 1983 to 1987, a period of rapid economic growth in the U.S., total savings by contributors to IRAs increased by approximately the amount of their IRA contributions. Does this show that virtually all of their IRA savings were new savings money th..
Outline a micro-economic reform issue that is relevant to the Australian economy (i.e. why has there been reform in this industry or market? How successful do you think these reform measures were and say why referring to some data or research that ha..
(i) State the null and alternative hypotheses. (ii) What is an appropriate test statistic to use?
How would you go about measuring return, how would you decide if it is good enough to warrant investment and in what sense is education capital.
How much is the uniform annual revenue in years 2 through 5 to achieve economic equivalence if the company decides to use MARR.
Discuss the following situation (a) from the strictly legal viewpoint, (b) from a moral and ethical viewpoint, and (c) from the point of view of what is best in the long run for the company. Be sure to consider both short- and long-range consequences..
What does the term, factors of production and the three most important factors of production?
The Latin term a priori describes the origin of knowledge developed rationally, and the term a posteriori describes knowledge developed through observation and experience. What is an example of ethics is best described as discovered in an a priori ma..
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