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Full employment after a recession
Suppose the economy is suffering from a recession. What policies would you implement to help the economy reach full employment? What are the benefits and shortcomings of these policies?
Suppose we have a competitive market for a good with domestic demand and supply given by:
Imagine a person's utility function over two goods, X and Y, where Y represents dollars. Specifically, assume a Cobb-Douglas utility function:
Explain how an increase in interest rates initiated by the Federal Reserve affects:
Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:
Currently, the extent of our economic difficulties has caused the economic policymakers to choose fiscal and monetary policies that are both expansionary.
Compute the coefficient of price elasticity for the price ranges given in the schedule and complete the first column of the table. What do you notice about the algebraic sign of the values you have just computed? Why is this so?
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
The demand and supply curves for gasoline (in billions per year) are given below. Using the equations, find the initial equilibrium price and the quantity in the market for gasoline.
Using the IS/LM model, demonstrate the effect of each of the following changes.
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
The table below shows the marginal utility a costumer would get by purchasing various quantities-What combination of the three products should be purchased in order to maximize utility?
Explain why this strategy may in fact, be rational Also, identify at least two other strategies that might permit Argyle to earn higher profits.
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