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The classical school of economic thinking is quite different from the Keynesian school. The adherents believe in different roles for government and have different ideas about what drives an economy and even what an economy is and how it functions. Explain the two approaches for the following scenarios (be sure to think of monetary policy, fiscal policy, effects on the components of GDP, and incentives people may face.)
The economy is in a recession.
The Federal Reserve Board has decided to lower interest rates below what many consider to be the proper or natural rate.
Some policy makers are advocating an inflationary policy to address unemployment.
Senator T has proposed a law exempting credit card purchases and interest on credit debt from taxes to stimulate consumption.
1nbsp below are six statements.nbsp indicate whether each one pertains to microeconomics mic or macroeconomics
Explain and illustrate using the Keynesian model (AE/Y diagram) the effect of the following events on the Aggregate Expenditure (AE) curve and income.
What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?
The problem related to Economics and the problem is about an economic consulting firm specializing in economic structures. Markets such as cartel, oligopoly and monopoly have been discussed in detail.
Problem: The argument of Adam Smith was that some nations were richer than others not because of innate differences across races but because of economic and historical factors. Draw your forethought on this.
What administration would help the economy more Eisenhower's or Kennedy's? Why? what were the major differences?
A friend convinces you that he has a great idea for a business, and the two of you incorporate. You supply him with funds and let him make all the executive decisions. Under the agreement you hold 30% of the firms stock and your friend holds 70%
Illustrate what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET BUYER of government bonds.
Read the case study in Chapter 2 titled "Laptop Versus Tablet: Which One to Buy." Write a two to three (2-3) page paper in which you:
After World War II, Canadian exports generally ________ Canadian Imports, but in the early 1990s, immediately following the signing of free trade agreements, Canadian imports grew ________ than exports. However, after 1994, ________ emerged again ..
What is the "current macroeconomic situation" in the U.S.? What fiscal policies and monetary policies would be appropriate at this time?
Knowing this in advance, buyers will be unwilling to pay more than P = MC to begin with. How could such a monopolist escape this trap?
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