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Question: Which of the following policy recommendations are consistent with the classical, Keynesian, monetarist, and/or Great Moderation consensus views of the macroeconomy?
a. Since the long-run growth of GDP is 2%, the money supply should grow at 2%.
b. Decrease government spending in order to decrease inflationary pressure.
c. Increase the money supply in order to alleviate a recessionary gap.
d. Always maintain a balanced budget.
e. Decrease the budget deficit as a percent of GDP when facing a recessionary gap
Suppose that Home maintains a stable fixed exchange rate with Foreign. What does this imply about the relationship between the two countries' interest rates?
Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase
Elucidate the difference between GDP and GNP. What adjustments needs to be made to GDP to arrive at GNP.
Calculate the price elasticity of demand for paint and Illustrate the calculations.
Wall Street responded by increasing SkyWest's market valuation from $143 million to $1.1 billion after the arrangement was made. Explain, in economic terms, how this arrangement with Delta and United could have caused the value of SkyWest to incre..
If an analyst predicts that the benefits of a two-year project would be $100,000 in the middle of the first year and $110,000 in the middle of the second year, the scrap value at the end of the project's life is expected to be $20,000 upon resale,..
Based on the newspaper government spending in the US is expected to rise through $30 billion next year. One of the senators of your state is touting how this increase in spending will lead to an rise in employment and aggregate output.
Suppose the CFO of a German corporation with surplus cash flow has 1 million Euros to invest. Suppose that interest rates on 1-year CD deposits in U.S. banks
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The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.
How are the long-run Phillips curve (LRPC) and the long-run aggregate supply (LRAS) curve related?
Ralph purchases a newly issued, two-year government bond with a principal amount of $10 000 and a coupon rate of 6% paid annually.- What price will Ralph receive for his bond?
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