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An economy is operating with output $400 billion below its natural rate, and fiscal policymakers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out. The marginal propensity to consume is 4?5, and the price level is completely fixed in the short run. In what direction and by how much would government spending need to change to close the recessionary gap?
The marketplace is saturated with modems, and your sales department has been able to identify only one potential buyer of your modems.
Hurricane Katrina may sting United State economic growth through choking energy supplies even as damages caused by the storm spur massive rebuilding and emergency government spending.
Provide an update on the economy-where is unemployment, what is the outlook for the deficit, what are the overall predictions for 2010 - 2012?
Illustrate what are the limits to the exchange rate at which it makes sense to produce in both countries.
Explain what caused the Financial Crisis of 2007-2009 and explain how in the economy could be self-regulating in the long-run and should recover from the Great Recession.
The demand for a shake at a Juice Shop can be described by the equation: Q=1000-240P+80N, where Q denotes the number of shakes sold every day,
The Bureau of Labor Statistics reported that in December 2002, total labor force was 142,542,000 of a possible 214,967,000 working age adults.
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
Explain an organization's staffing practices and selection tools in response to two of following trends:
Illustrate what are your preconceptions of economics. Do you think economics will be a relatively difficult course.
"Most of the firms spend considerable amounts of money on advertisement". Explain advertising elasticity of demand and its practical applications in this context.
Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?
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