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Suppose an economy is given by the following equations:C = 100 + 0.75YdI = 125 - 5iG = 100T = 100(M/P) = 50 Y L(i) = 0.1Y - 2i Yn = 1250 (Yn is the natural level of output)
Using the above information, answer the following.
a). Derive the IS and LM curves.
b). Find equilibrium Y and equilibrium i. Is the economy in a recession or a boom? What policy should the government (administration) pursue? Explain your answer specifically explaining what information leads you to think the economy is in a boom or a recession.
c). Suppose that the central bank decides to increase money supply to (M/P) = 150. Find equilibrium Y and equilibrium i. Is the economy in a recession or a boom? What policy should the central bank and/or the government (administration) pursue? Explain your answer specifically explaining what information leads you to think the economy is in a boom or a recession and what policy should be pursued.
Consider an economic model designed to analyze the purchasing decisions of households. An assumption that a household chooses between only two goods would be an example of a
Those austerity measures which were implemented in South Korea in the 1997 Asian financial crisis. What would be the macroeconomic justifications?
There is no missing information. This is a general question in regards to the effects of crowding on an investment demand curve.
Suppose venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import?
Continue to assume that capital and labor can each be hired at $1 per unit. Show that in the long run, if the firm produces 10 units of output, it will employ 10 units of capital and 10 units of labor. What is the long-run total cost to produce 10..
Describe the effects of monetary policies on the economy's production and employment.
The drug is dissolved in water (1.50 mg/ mL). What is the oral temperatue of the patient in Kelvin?
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically)
1. List two arguments for allowing importation of foreign prescription drugs. 2. List two arguments against the importation of prescription drugs.
Describe the "Conservative" desired policy response to a recession.
TASK DESCRIPTION: For Australia - Critically analyze the reasons for the variation of growth rates in that time period about 1200 words
(a) A shop manager's annual gross salary is £29,400. A bonus of 3½% of the monthly gross salary is earned and paid in October. Deductions from salary in October are Income Tax and National Insurance. National Insurance deduction in October is 6¾% ..
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