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The President of Bartavia is being advised on economic policy by you, his economic advisor. Assume that Bartavia is very close to the full employment level (resources are almost all fully employed in the economy) but the President of Bartavia is still worried about unemployment. Therefore he wants to enact some expansionary fiscal policy. How would you explain the logic of a potential short run trade-off between unemployment and inflation to the President? In other words, why might there be an inverse relationship between unemployment and inflation over the short run when the economy is very close to full employment and no technological advances are occurring simultaneously?
Should price stability be the goal of monetary policy Explain your responses. Compare and contrast the impact of an unexpected shift to a more expansionary monetary policy under rational and adaptive expectations. Are the implications of the two t..
Define Demand and Supply - What may cause individual household to buy more goods and services?
environmentalists argue that trade liberalization harms the environment. the decisions of the world trade organization
Critical Thinking: Most of the world has floating exchange rates, but the Euro Zone combined the currencies of 17 countries to in effect, create a fixed exchange rate between them. China has a fixed exchange rate with the US dollar, and under values ..
What is the current equilibrium level of GDP, what is the level of injections and what is the level of withdrawals?
When Joe started his job at the Laundromat five years ago, his wage was $5.00 an hour. Today his wage is $8.50 an hour. If Joe started his job in the base year, and his real wage is the same as when he started, what is the customer Price Index today?
There are two types of apartments in the city: Good (20%) of the apartments) and bad (80% of the apartments). You could live in either of them, but you would prefer a good apartment.
After correcting the sign in the demand function, what is price elasticity of demand for movie tickets and what is the income elasticity of demand for movie tickets?
the social and detail division of labor my neighbors ted and janet consume prom dresses and accounting services. each
10. "IBM is investing $3 billion in a private-public partnership with New York State, GlobalFoundries, Samsung and equipment vendors," to create ultradense computer chips (John Markoff, New York Times, July 9, 2015). TOTALLY MADE-UP SCENARIO: Suppose..
If there is asymmetric information what is the optimal strategy for the workers What is the optimal strategy for the firm Is the employment contract between the firm and the workers self-enforcing If yes, why If not, which would be a self-enforcing..
On October 9th the US House of Representatives voted by 261-59 to end a 40 year ban on exporting crude oil. Students are asked to prepare a 3 -5 page case study detailing the financial ramifications of this legislation on E&P producers and domestic a..
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