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By using AD-AS (upward sloping) and Phillips Curve analysis, explain what happens to output and price level as well as unemployment and inflation rates in both the short and long run for each of the situations listed below:
a) The government decreases the corporate tax rate from 30% to 20%.
b) Bank Negara Malaysia (BNM) increases the required reserve ratio.
Describe the various key roles of the Reserve Bank of Australia (RBA) as specified on their website.
Find an article on firm's production and cost from a major news media by providing title, date, source and summary of the article. Explain how this article relates to firm production and cost.
Paul invest $700 in the manufacturing of lights. during first two years, he earns $1700 each year. after that, the operation folds and he earns nothing. Paul's discount rate is 20%. what's the NPV of Paul's operation?
The simple case of a fixed per-unit tax is indicative of more complicated ones. Consider a proportional sales tax and a progressive sales tax.
What are the marginal propensity to consume (MPC) and marginal propensity to save (MPS)? How are the two concepts related? How are the two concepts related to the consumption and saving functions? What is the effect of net exports, either positive or..
The Commerce Department revised its estimate of real GDP to $3.877 trillion, up from the earlier estimate of $3.835 trillion. Before adjusting for inflation, GDP was $4.603 trillion, up from $4.523 trillion.
What are the 3 goals of macro-economic policies and the target rates?
You and your friend are watching a Baseball game, the teams are X and Y, assume you agreed to give your friend $ 44 if his/her team “Y” wins, also he/she agreed to give you $ 44 if your team “ X” wins, probability of team X wins = probability of team..
Illustrate types of government programs would be most effective in combating each type of unemployment.
An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..
At what level of output are total profit maximized. Illustrate what price will be charged.
Suppose that an economy is in a steady state, so that ongoing union organization is just enough to maintain some constant density of union coverage. A new law is passed that greatly increases the penalties for firms found to have violated laws about ..
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