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The basic (primitive) Keynesian macro-economic model focuses solely upon the determination of equilibrium in the real sector (goods market). This is made possible by the assumption that the interest rate (RD) is constant. On what grounds can it be argued that, once this highly restrictive assumption is relaxed, we are forced to talk in terms of simultaneous equilibrium in the real sector (goods market) and the financial sector (market for money)?
Which policy – the tax or the subsidy – would cause less pollution to be discharged into the river? Explain.
A news report on NPR declared that the average hourly rate for 2014 was $30.56. You believe, based on your analysis from the case studies, that the average hourly wage is different than what was reported on the radio. Perform an appropriate hypoth..
In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?
1. Suggest how monetary policy is effective at preventing inflation but ineffective in countering recession. Provide support for your response. 2. From the e-Activity, suggest two other methods the Federal Reserve can implement to support a stronge..
Suppose that the cost of living increases, thereby reducing the purchasing power of your income. If your money wage doesn't increase, you may work more hours because of this cost-of-living increase. Is this response predominantly an income effect ..
In some economies relative supply may be unresponsive to changes in prices. For example, if factors of production were completely immobile between sectors, the production possibility frontier would be right-angled, and output of the two goods woul..
It is often the case in economic models that we estimate models using the log of the key variables. Re-estimate the model using the following model:
1. nbspbriefly define the following termsa.nbspnbspnbsp net borrowerb.nbspnbspnbsp currency appreciationanswer the
To increase marketplace share, Giuseppe would like to raise sales to 750 every week. Elucidate price should Giuseppe set.
Suppose a consumer has $150 to spend on food and clothing. Food costs $4 per unit and clothing costs $5 per unit. The consumer's utility function is U(c,f) = f^2c. a. Give an equation for the consumer's budget line. b. Give a formula for the consum..
the following table shows nominal gdp and an appropriate price index for a group of selected years. compute real gdp
Use this title: Lessons in Personal Leadership Development Answer the following questions
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