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Assume the economy is in long run full employment equilibrium with unemployment at the full employment rate of 6% and inflation of 4%. In this situation what would happen to aggregate demand and aggregate supply, unemployment, and inflation should the federal government cut business and individual taxes by 4 trillion dollars next year? Use the Phillips Curve and aggregate demand and aggregate supply to support your answer.
The economy has 1000 units of capital and a laor force of 1000 workers. a). Derive the equation describing labor demand in this economy as a function of the real wage and capital stock.
Select an article in a newspaper or magazine that discusses a government policy on goods or services.
Suppose You are a manager of a small US company that sells nails in a competitive market the nails are a standardized commodity,
Briefly discuss how aggregate demand and aggregate supply may affect your job prospects after you leave college. In other words, do you think the aggregate demand (AD) in near future will increase?
A United State corporation CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2%
Illustrate what economic policy should be adopted by regions with persistent economic problems.
Why do you think governments in developed nations continue to lavish extensive support on agricultural producers, even though those producers constitute a very small segment of the population?
What are your predictions for the US economy over the next two years? Use the macroeconomic models you have learned to present a reasoned answer. Explain your assumptions clearly.
Briefly explain what a government deficit is and then outline the methods the government has available to it for financing government spending programs. What effect on the monetary base do these government deficit financing options have on the mo..
Discuss and contrast how your State and Metropolitan/Local Area GDP rates and personal income compared to the Rest of the U.S. by briefly summarizing the information within these categories. Such as, identifying the contributors to real GDP, pers..
Find its profit-maximizing output level.calculate her profit - what is the lowest price a typical seller is willing to accept in the short run?explain with calculation.
Write on ONE of the following topics. Write in your own words, based on some reading in the text book chapters, on Wikipedia, or from online articles. Write between 300-to-500 words.
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