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Describe why a reduce in aggregate demand results in a lower level of employment, given a fixed aggregate supply.
Differentiate between two sources of inflation. Describe why steady inflation is likely to be less harmful to an economy than a situation which inflation rates vary alot.
"A rise in planned investment spending in an economy will lead to a rise in consumer spending." use the concept of the multiplier to verify this statement.
In constructing the short run aggregate supply curve, what is meant by the term "short-run"? How does this concept differ from the long run and what is the effect on industry of the difference in terms of planning? Explain the role of labor contracts on movement along the SRAS curve
Illustrate what effect would a period of rapid inflation likely have on the role of money.
Which of the following is the best example of a monopolistic competitor? Firms in a monopolistically competitive industry produce:
Assume that the MPC is 0.85 and that the Government is considering to boost the economy to increase real GDP by $2 trillion for the 2008 general elections.
Fewer potatoes are demanded when the price of rice has fallen from $ 0.25 to $0.10 cents per pound-The Molly Jock wants to buy a high definition television to watch the Olympic Greco roman wrestling competition in Beijing.
Illustrate what is the elasticity of demand for the product that is produced by the company.
Illustrate what would you expect to see happen to the cost of a checking account if banks could not make loans. What would happen to the amount of investment made by businesses.
Assume that the economy starts in steady state. According to the Solow growth model, how would each of the following affect consumption per worker in the long run, Explain?
Illustrate what fiscal policies are needed to fight unemployment
Create an educated guess as to illustrtae you expect to happen to short-term.
As per international political economics theory as a central part, I need to identify problems with organizing the international currency system.
Illustrate what is the practice by a monopolist of charging each buyer the highest price.
a powerful leading indicator of overall future economic activity. Elucidate why is it a more meaningful indictor than housing starts.
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