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The policies of the federal government influence the outcomes of the various activities in that economy. When government policies change or unplanned events occur, the resulting economic events or activity will usually change. Listed below are several policies or events that affect the performance of the economy: The federal government employs a budget plan over several fiscal years that results in significant increases in the national debt, with no relief or plans to deal with the problem. The federal government enacts new tariffs and quotas on all imports. The general public loses confidence in their leadership, in terms of their ability to manage the economy, especially in the area of job creation. The federal government, in an effort to stimulate the economy, decreases taxes on all individuals except those earning over $250,000 per year. The level of investment decreases because of a lack of confidence in the economy. Interest rates are kept artificially low by the Federal Reserve for several years. Required: For each of the items above, describe what would be the likely outcomes in the economy. Use the appropriate tools of analysis, such as aggregate demand and aggregate supply where appropriate, to justify and explain your answer.
q1. in the short run the interest rate parity model is considered to be important in determining the expectations about
Read this article; what is the most likely way that anti-gouging laws potentially can increase social welfare? They increase the deadweight loss for those companies who practice price gouging. The laws raise these companies' costs so that it is no lo..
Kennywood Amusement Park spends $75,000 each year in consulting services for ride inspection and maintenance recommendations. New actuator element technology enables engineers to simulate complex computer- controlled movements in any direction.
Using the figure below, answer the following: a) What rate of output maximizes profits? b) What is MR at the rate of output? What is price? c) If output is increased beyond that point, what is the relationship of MC to MR? How will this affect total ..
The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time and reach this steady state.
In an English open outcry auction,
Which is the proper cite for the Code of Federal Regulations?
Which of the following is not a characteristic of capitalism? Agriculture is started to have five (5) distinct sub groups, which of the following was not a sub group listed in class? The index value for bottled water for 2006 is 1.6, the base year fo..
Which of the following statements is generally True about information products?
Assume there was a new $100,000 deposit into a checking account at a bank. What would be the resulting excess reserves created by that deposit if banks faced a reserve requirement of: a. 10 percent? b. 20 percent? c. 25 percent? d. 50 percent?
Suppose the Fed purchases $1,000 worth of Treasury bonds. Suppose also that the required reserve ratio is 10%. How much money will be created in the banking system?
Find a numerical equaltion relating planned aggregate expenditure to output and to the real interest rate.
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