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1. Define monetary policy and describe the main goals of monetary policy in Australia?
2. Explain why a central bank would reduce interest rates. How would a cut in interest rates affect each of the components of aggregate demand? Use the AD/AS model to illustrate the effect of a cut in interest rates on the economy.
3. What are externalities? Using examples explain the difference between consumption and production externalities and between positive and negative externalities. Choose one example of an externality and using a diagram show how the market fails to produce the efficient quantity.
4. Distinguish between public goods and common resources. Explain why each of these goods can cause the market to fail.
5. What is asymmetric information? Using examples, distinguish between adverse selection and moral hazard and explain why each can result in market failure.
The fuel prices are goingdown internationally. But the benefit is not being shared by the consumers.Why?
Use the IMF's World Economic Outlook Database and/or FRED. Compare and discuss variables that reflect the major impacts and key indicators of the crisis.
savings is 80 billion and intended investment is 70 billion.a what is the current total investment?b what is the
Use the concept of opportunity cost to explain the following situations: 1) More people choose to get graduate degrees when the job market is poor.
If the CPI was 120 last year and is 132 this year, what is this year's rate of inflation? Instructions: Round your answer to two decimal places. In contrast, suppose that the CPI was 120 last year and is 118 this year. What is this year's rate of inf..
Looking for someone who is familiar with this topic and would like to help me out. Need it completed today. As part of a marketing research committee for your organization, you have been assigned the task of preparing a 700-word research paper abou..
1. Consider the following AS-AD short-run framework. Assume that up to period t = 2000 the economy has been resting at the long-run equilibrium (Point A). The Fed. decides an expansionary policy with shifting AD curve to the right (AD2000 =⇒ AD200..
Assume no change between 2005 and 2006 in the population, percentage of part time workers and working age population. Second, discuss in detail how the numbers show the unemployment rate can fall even if there are no new jobs being created. List t..
While browsing internet, what do we call the area of storage that compensates for the different speeds of data flow or timings of events by temporarily holding a block of data that is waiting to be processed?
For several years, advertisements for Arm & Hammer Baking Soda have prompted consumers to place an opened box of the product in the refrigerator to lessen food odor and to replace that box monthly. The same ads advise customers to pour the used bo..
A negative oil price shock: It is common to blame some of the poor macroeconomic performance of the 1970s on the rise in oil prices.
How has improved resource allocation stimulated economic growth?
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