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Use the AS/AD model to reconcilethefollowing seemingly inconsistent statement:
• In The short run Government Monetary Policy(define these) CAN alter realvariables like GDP and Employment but in the long run itcannot.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Please make sure you have a thesis (a main point that you are making) and develop it thoroughly and coherently. Use specific examples based on empirical evidence (from research, direct observation and experience) and clear standard English.
Assume the price level is fixed in the short run so that the economy does not reach a general equilibrium immediately after a change in the economy. For each of the changes what are the short-run effects on the real interest rate and output
Calculate the inflation rates for the years ended June 2011 and June 2012. Explain how the inflation rate changed in 2012 and explain why might these CPI numbers be biased?
In some countries, the role of women is not regarded in the same way as a man. how might this effect production in the country and the consequent effect on standard of living.
Countdown to a new agreement might galvanize development assistance debates. What do you think will happen and should happen- and why.
The key feature of the production function is that the marginal impact of capital per worker k = K/L on Y/L decreases as K/L increases.
Suppose the price of unleaded regular octane gasoline were 20 cents per gallon higher in New jersey than in Oklahoma. Do you think there would be an opportunity for arbitrage
Making dresses is a labour-intensive process. Indeed, the production function of a dress-making firm is well described by the equation Q = L - L 2 /800, where Q denotes the number of dresses per week and L is the number of labour-hours per week.
Interest Rates and ATM Trips.Carlos, who lives in a country where interest rates are very high, goes to an ATM every day to get $10 of spending money
What is the difference between contractionary and expansionary monetary policy?
Identify the incentives to produce and price the product for a traditional monopoly and natural monopoly. Is it best for society, i.e., does society receive more welfare, to have natural monopolies provided by a private firm or by the government.
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