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Question 1: Explain two phases of the business cycle. Discuss the business cycle indicators. Explain why do changes in total spending cause the level of GDP to change? How does GDP gap relate to the actual GDP in a particular period?
Question 2: Discuss three ranges of the aggregate supply curve. Explain changes in the AD-AS macroeconomic equilibrium due to the shifts in aggregate demand and aggregate supply curves. Apply the AD-AS model to the two types of inflation.
Question 3: Explain the modern monetary policy implementation in Australia. Analyse how government can combat a recession using a discretionary fiscal policy.
Question 4: How is a country's exchange rate determined? Explain four important sources of shifts in the supply and demand curves for foreign exchange. What is the economic impact of exchange rate fluctuations?
Explain how can the abolition of cash fight inflation and reduce unemployment.
What are the limits to our long-term economic growth in the US? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
What does this imply about the expected future in?ation? Now graph the yield curve for AAA, AA, and A rated corporate bonds. Is the corporate yield curve the same shape as the Treasury yield curve? Why or why not
A rural utility company provides standby power to pumping stations using diesel-powered generators. an alternative has arisen whereby the utility could use a combination of wind and solar power generators, but it will be a few years before the ene..
You are a designer of children's clothing and decide to open a children's clothing store. You find a nice space in a local mall and agree to sign a one-year lease agreement that runs from September 1 to August 31.
List three main tools available to the Fed to change the money supply in the economy.
The company's computer system uses fluid structure interaction modeling to test and analyze each airbag design concept. What is the present worth of the concept at 16% per year, compounded quarterly, if the quarterly cost in years 1 through 5 is $..
Consider two firms X and Y produce identically tasting cold drinks. In order to increase the demand for its cold drink, firm X increases its advertisement outlay. However the advertising doesn’t increase its demand in the long run. Explain why this m..
Explain and illustrate using the graph of the labour market and the production function the effect of decrease in labour productivity on potential GDP, the quantity of labour, and the real wage rate.
Nancy Folbre argues that children are closer to being public goods than they are to being pure private goods. What are the major elements of this argument Do you find the argument persuasive. how the costs of children should be borne
Draw a diagram depicting a small importing country with a nonprohibitiveimport tariff (T) in place. On the diagram indicate the tariff rate and theequivalent import quota (Q) that would generate the same domestic price.
First, read Fuguitt and Wilcox, pages 181-183. Then, from the Stock and Watson text Web site. find a data file CA school districts that contains data on school districts for 420 districts in California. A detailed description is given in CAschool..
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