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Part 1: Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs. Include the following concepts in your discussion: Demand and supply of money Interest rates The Phillips curve Taxation Government spending Wages Costs of inflation The multiplier and the tax multiplier The idea of tax rebates to stimulate the economy Part 2: Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?
the supply and demand for one product can affect the supply and demand for substitute items. explain and give examples.
you consume only soda and pizza. one day the price of soda goes up the price of pizza goes down and you are just as
law and the court system the law firm for which you work is in the state of louisiana and is in the process of
What does the sharing economy mean to you? What are the benefits of living in a sharing economy? What is a potential downside? Have you had any personal experience with the sharing economy? What would you share, what wouldn't you share?
suppose there are nine sellers and nine buyers each willing to buy or sell one unit of a good with values 10 9 8 7 6 5
suppose that the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the
the olde yogurt factory has reduced the price of its popular mmmm sundae from 2.25 to 1.75. as a result the firm daily
Alfred chan decided to buy an old duplex as an investment. After looking for several months, he found a desirable duplex that could be bought for $300,000 cash. He decided that he would rent bought sides of the duplex, and determined that the tota..
Using the "Monopoly" model found in the Chapter 10 "Origin of Idea" module, explain why a monopoly will never operate in the inelastic portion of the demand curve? What are the underlying purposes of the antitrust policy in the United States? Thes..
Consider a profit maximizing firm producing a differentiated product by use of capital and labour. Although the firm can use both capital and labour as inputs, and it is fairly easy to substitute between these inputs, the firm relies heavily on la..
a doctoral student has just completed a study for her dissertation and found the following demand and supply
The miracle Manufacturing company Short run Average cost Function In 1997 Is AV=3+4Q , Whwer AC is The firms Average cost ($/pound)And Q Is its output rate. A) Obtain an equation For the firms Short-run Total cost function.
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