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(a) Draw a figure, using the Keynesian IS-LM framework, of an economy in recession.
(b) Now suppose the IS curve shifts up and to the right far enough that if the real interest rate is unchanged, output will increase beyond full employment. If the Fed's goal is to move output to its full-employment level, what must happen to the real interest rate? What is the effect on the price level?
(c) Suppose, before the Fed can act, that the government announces a restrictive fiscal policy, shifting the IS curve down and to the left relative to its position in part (b). What is the Fed likely to do (relative to what it would do if fiscal policy wasn't restrictive) if its goal is to target full-employment output? What happens to the real interest rate relative to what it is in part (b)?
Identify each of the following events as: (use a, b, or c to answer the question) a) part of an expansionary fiscal policy b) part of a contractionary fiscal policy c) or not part of fiscal policy i. The corporate income tax rate is increased.
Suppose the following cost functions of a perfectly competitive company? Compute the firms profit or loss, should firm shut down if loss?
Management in the team's organization has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a repo..
The relation among the number of technicians recruited per hour and the number of radiographs produced per hour is shown in the following table.
Determine the prime rate, the discount rate, and the federal funds rate and who controls these rates? What would you expect to happen in the general economy if these rates are all increased or Decreased?
What method is used to ration goods in a market economy? How does this rationing method influence the incentive of individuals to supply goods, services, and resources to others? How are grades rationed in your economics class?
Why is economics considered a social science? What role does economics play in your personal and professional lives?
U.S. industry responded to the undeserved domestic leisure travel market that existed in the early 1900s with a second wave of low cost carriers (LLCs)
Perform them following: Compute the price elasticity of demand for paint and show your calculations.
Determine the economy current stage in the business cycle and support your answer with an article written within the last week from popular press or blog.
The bank offers a 30-year mortgage with fixed monthly payments and an interest rate of 0.5% per month. What is the amount of your monthly payment if you take this loan?
Cost of production- in any industry in Australia where costs of production are an important issue and analyse what is being done in the industry. May be the industry is switching to technology or/and some substitutes have been used to overcome thi..
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