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Introduction to Economic Fluctuations
1. Explain the following components of LEI index: a. Average workweek in manufacturing b. Index of stock prices c. Index of consumer expectations d. M2
2. Explain the slope of the aggregate demand (AD) curve using the quantity theory equation.
3. Suppose that the government reduces the money supply to reduce inflation. Using graphs, illustrate the impact of this policy on output and inflation both in the short-run and in the long run. State what would happen to unemployment. 10. Read the case study titled "A Monetary Lesson from French History" from Chapter 10 (Mankiw). Was the government successful in its goal to reduce inflation? Why was the government successful/unsuccessful?
4. Suppose there is an exogenous increase in the velocity of money. Show graphically what would happen to output and inflation in the short-run and in the long run. Also mention what would happen to unemployment.
5. Suppose workers have unionized and have bid up their wages. Explain graphically the impact of this event on output and inflation. What sort of stabilization policy would you suggest to restore the economy?
kaiser.s almon plant can produce k tons of aluminumyear. a ton of aluminum requires e megawatt hours of electricity.
In Tobin s analysis of the speculative demand for money, people will hold both money and bonds, even if bonds are expected to earn a positive return. Is this statement true, false, or uncertain? Explain your answer.
1).Why is the depreciation of capital good a cost of society? In what ways does a person's health depreciate? 2).Why might older people's health care expenditures increase in the Grossman model even though their desired health stocks may be lower?
suppose we are analyzing the market for hot chocolate and at equilibrium. for each identify the determinant of supply
you are one of the countries budding entrepreneurs which qualities do you have and how are you going to use them to
at a student cafeacute there are equal numbers of two types of customers with the following values. the cafeacute owner
Unit elastic demand occurs
how can we measure the nations economic performance? describe what factors make it difficult to compute gdp accurately?
the mean sales for tire sales of ntb is 1100 the standard diviation is 50.a. according to chebyshevs theorem what
Sergei is a computer programmer with a utility function equal to U=Y+120L-L . He contracts with Uber that allows him to set his own work hours; they pay him $50/hour. He has allocated himself a work-hour time budget of a maximum of 250 hours per mont..
You plan a major adventure trip for the summer. You won’t be able to take your usual summer job that pays $6,000, and you won’t be able to live at home for free.
Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..
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