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1. According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.
2. Suppose that the government pursues expansionary fiscal policy by lowering taxes. What are the expected demand-side effects? What are the possible offsets to the demand-side effect? How might supply-side effects change these results?
3. Explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.
4. What are the direct and indirect effects of an increase in the money supply?
5. What are the effects of a tariff on a good?
q1. consider the following macro modelwhere y p and m are the logs of real output prices and the money supply
"Real Wages and Productivity-Are Workers' Paychecks Keeping Up?" Historically, over the long run, real wages grow at about the same pace as labor productivity. But has real compensation per hour kept up with output per hour over the latest 3 years..
Find is the equilibrium price for hotdogs and graph and what are Qd and Qs when a hot dogs costs $5.00. What can be inferred?
You are planning a short-run production function for your firm, and you have collected the following data on labour usage and output: Calculate estimates of total. Average, and marginal products when the firm employs 23 workers
Explain whether you think the supply of the following goods is elastic or inelastic,
A good which if supplied to one person is supplied to all and whose consumption by one individual does not prevent its consumption by another individual is known as: a private good. a public good. an external good. an internal good.
(Excel exercise) Federal Reserve bank of St. Louis (http://research.stlouis.org/fred2/) provides data on the U.S. economy. The data needed for this exercise is also available on the course Moodle under "US-CPI and Unemployment-Annual". The data set c..
Article: Why you should worry about big oil. The oil industry is in the business of extracting and selling oil. It is the goal of the oil companies to do this as efficiently as possible.
Illustrate what the government should do about it, how would each economist explain unemployment and what policies would each advocate.
1. Quasimodo consumes earplugs and other things. His utility function for earplugs x and money to spend on other goods y is given by u(x, y) = 100x - x^2/2 + y. (a) What kind of utility function does Quasimodo have?
Can you find an example of natural resource policies (in the USA or elsewhere) that attempt to achieve efficient rates of harvest for renewable resources?
Illustrate what are the effects on American wages and purchasing power of the continued outsourcing of labor overseas. What are some of the reasons for these trends.
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