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The U.S. economy is currently in the expansion phase. An expansion is a period in which the economy experiences two or more consecutive quarters of positive percent change in real GDP and is often associated with decreasing unemployment rates and increasing inflation rates. Given the current stage, would you recommend the Federal Government or the Federal Reserve Bank undertake expansionary or contractionary fiscal/monetary policy? Explain why? (Must choose between expansionary and contractionary)
The dynamic aggregate demand curve will shift to the right if there is a:
If you choose to contribute to a candidate’s campaign, to what extent is the candidate obligated to you as a contributor? Should your contribution influence public policy?
Consider a production possibilities frontier? (PPF) that is concave? (bowed outward from the? origin). Such a PPF displays increasing opportunity? costs, meaning that the cost of producing additional units of both goods rises. What is the reason for ..
Companies want to expand their business and improve their sales and profits. Instead of building manufacturing plants and installing new machineries, companies look to buy other companies and integrate them into their current business.They have $22 m..
What factors give rise to increasing returns to scale and decreasing returns to scale? Define and then derive the expression for the marginal rate of technical substitution.
Identify the four major tools of monetary policy. b) Describe how changes in the Fed’s major policy tools leads to [1] expansionary and [2] restrictive or contractionay monetary policies.
What is the impact of the shrinking world on whether small to medium sized businesses should engage in international trade.
You are in charge of making recommendations based on economic forecasts to upper management of your firm, which produces widgets, and employs 2,500 workers. What would you look for in terms of leading indicators (discuss at least three indicators), a..
If the demand for gold residue high explain what would happen to the price in excess of time.
Please provide a graphical example and explaination of what could potentially happen to the number of people employed in an economy if the government were to decide to raise the minimum wage from $7.00 to $15.00; in addition, provide an explanation o..
Consider the example of moral hazard problem when a firm issues bonds/takes loans (in lecture note 9). We have shown that if the a sufficiently large fraction of the project is financed by the firm’s internal funds (in our example, 25%), the firm wil..
How would quantity demanded and the price of this product be measured? Explain the relationship between the individual consumers’ demand and the market demand
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