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Using the AS/AD model, discuss the likely impact of the following events with proper diagram(s): a) An increase in petrol price (starting from the full-employment level). b) A rise in the general price level (starting from below the full-employment level). c) The world economy enters into a recession (starting from the full-employment level). d) The Real Estate business in Australia booms (starting from the full-employment level).
Describe effects of a contractionary fiscal policy where the government reduces spending. Be sure to discuss what happens to output, interest rates, consumption, investment and the government budget deficit in our model. Discuss all shifts and moveme..
Explain how new Classical and new Keynesian theory overcame their respective weaknesses/criticism as they borrowed from each other and are currently able to coexist successfully.
The Blue Dragon Restaurant is a new Chinese Restaurant in town. As the only Chinese restaurant in the area, it faces the following daily demand curve:
Mr. Wahl wants to buy a new house. It will cost $178,000. The bank will loan 90% of the purchase price at a nominal interest rate of 10.75% compounded weekly
A consumer's preferences over two goods are represented by: U(x1, x2) = (x1^2)(x2^3)/100 The prices are P1 and P2, and an amount of money E can be spent on these goods. Show that the two uncompensated demand functions are: x1 = 2E/5p1 and x2 = 3E/5p2
Also, if government decides to reduce real interest rates as a part of their monetary policies,what would happen to the aggregate supply and demand?
Which is more economical, heating with natural gas or with electricity? Assume that both the equipment and building have a 25 year life, that the salvage value is 0 for both and the interest rate is 8%
Do you think the opinions cited by Simon Sinek during "why good leaders make you feel safe" TedTalk posted have any impact on the success Succession Planning an
A tax placed on buyers of airline tickets shifts the
The difference between the price the firm sells a good for and the price it paid other firms for intermediate goods is called. The annual charge that estimates the amount of capital equipment used up in each year’s production is called. Which of the ..
Use the Bureau of Economic Analysis website to choose data for this assignment. In addition, review the articles in Topic Materials relating to econometrics.
What is the current household saving rate in the United States? What do you think of this saving rate? Too high or low?
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