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During the recession of 2008-2009, and even after the recession ended, we saw the use of many monetary policy tools to stimulate the economy. Please find one article from an established source (newspapers, respected magazines, and so on), documenting monetary policy in action in action. Please explain exactly how (in the context of the aggregate expenditure model, and being as specific as possible) the policy is supposed to work to affect the economy. Please include a link to the article you are discussing.
Suppose an economy’s real GDP is $46,000 in year 1 and $49,200 in year 2. What is the growth rate of its real GDP? Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of real GDP per capita?
Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates
The article touches on two crucial conditions for a fiscal stimulus to work.
Draw the isocost line corresponding to a total cost of $10,000 is: 50 L + 100 K. TC = w L + r K, where L is the quantity of labour, K is the quantity of capital, w is the price of labour, and r is the price of capital. And draw the isoquant curve on ..
Which of the following statements about setting optimal two-part tariffs for many consumers is NOT true? The number of buyers (entrants) declines as the entrance fee (tariff) increases. The profit from the entrance fee (tariff) is a concave function ..
A firm that has the long-run cost curves shown in the graph above would be able to do or have the following, except:
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is su..
What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
Phelps-Dodge plans to expand capacity by purchasing equipment that will provide additional smelting capacity. The cost of the initial investment is expected to be $16 million. The company expects revenue to increase by $3.8 million per year after the..
If Professor Mamuns contract pays $100,000 every year for next 6 years, what is future value of this contract at 5% discount rate. What is present value of contract.
What are your thoughts on tort reform, more specifically setting caps/limits (ceilings) on jury awards/verdicts in tort liability cases. Class action cases? Corporate liability cases? Is this a good idea? Who would lobby for these caps? Who DOES lobb..
The Discussion is a great place to learn in an interactive environment, so be sure to participate actively in the weekly Discussion. By doing so, the entire class benefits from the Discussion and learning is significantly enhanced. You will need t..
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