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Aggregate Demand, Multiplier Effect, and Fiscal Policy
1. Describe the factors that cause the aggregate demand (AD) curve to shift and the factors that cause the short run aggregate supply (SAS) curve to shift. Explain how each factor described above works in shifting the AD and SAS curves.
2. Explain the difference between expansionary and contractionary fiscal policy and describe how each policy affects aggregate demand, aggregate expenditures, output and income.
3. Explain how the multiplier effect would support Keynes' explanation how economies can fall into recession or depressions.
Compute the point price elasticity of demand for bearing grease. Compute the optional price for bearing grease if marginal cost is $4.50 per unit.
Assume that you're a member of the Board of Governors of Federal Reserve System. The economy is experiencing a sharp decline into a recessionary phase of the business cycle.
Leisure-Time boats is a manufacturer of mid-to-high end boats with 12 sales territories throughout the U.S. Sales are generated by salespeople in each territory who develop relationships with boating distributors and related retailers.
In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Suppose the Federal Reserve lowers its target for the federal funds rate six times in seven months while the European Central Bank leaves its target for short term interest rates unchanged.
15 page term paper on International Business from economic view point. The topic is effect of corruption on Chinese and Indian economy and how India's IT sector (or could be any other sector in which compared to China the corruption is less) is ab..
Describe a sequential game facing your firm, and represent it in extensive or tree form. Compute and analyze the equilibrium of the game.
Consider a monopolist facing demand curve Q = 100 - P. MC=AC=$20. Find out the monopoly price, profits, and consumer surplus.
You're the absolute czar and head of union of 1,000 plumbers in Austin, Texas. You've the absolute power to set the wage at which the plumbers will work. You wished to achieve full employment at highest possible wage; (b) you wished to maximize the..
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
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