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Keynesian theory aggregate demand
1. At the insistent urging of President Obama, Congress has enacted massive spending bills totaling over $1 Trillion. This is sold to the public as "economic stimulus". What is the purpose of this orgy of spending? Explain the macroeconomic rationale for this action by the Federal government.
2. According to the (Keynesian) theory in does it matter what the money is spent on?
3. How is the above stimulus bill going to be financed? According to the (Keynesian) theory, does it matter where the money comes from?
4. Using common sense (and not Keynesian theory), discuss the amount of stimulative effect we can expect, depending on how the "stimulus" is financed: by taxes, by borrowing from the U.S. population, by borrowing from foreigners, or by borrowing from the Fed. What are the long term consequences?
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
Express the effects of government economic policies which could have on the sales of the Escalade
Suppose if the discount rate for the stock is 12 percent, at what price will the stock sell.
Given the wide variety of different fast-food vendors, the industry is fiercely competitive, as is the unskilled labor marketplace.
How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
A monopolist faces the following demand curve: P=120-0.02Q-What is the level of production, price and total profits per week?
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
Elucidate which economic concepts, sure as comparative advantage, apply to your firm. Explain how these economic concepts can be used to address the firms's problem and opportunities.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
What is the impact of this on the revenues of the networks also why.
List four reasons why analyzing the economy is not as precise as the multiplier model makes it appear.
What elasticity of demand did the Village Administrator seem to assume here in his prediction for 1970- 1971? Compute the approximate elasticity of demand (round off, two decimal places is close enough).
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