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Question
From an initial position of long-run equilibrium for the economy, describe the short- run and long-run macroeconomic impact on output, inflation, and real interest rates of a surprise terrorist attack that destroys several large factories in a given country. Start your answer with a brief indication of its likely impact on potential output. In your answer, you should use the aggregate-demand, aggregate supply model developed in this course. Also assume that the Fed implicitly allows its target rate of inflation to change, For extra credit discuss how your answer would be modified if the terrorist attack resulted in the destruction of several factories in foreign countries as well as at home.
The many loopholes present in the federal income tax system prior to the 1986 tax reform caused all of the following except
Give two reasons why Marginal Revenue curve of a pure monopoly is downward slopping?
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. In offering such training programs, is a company violating the optimality rule?
Discuss the possible impact on the current account of the balance of payments and the UK economy of an increasing rate of inflation throughout the global econom
What criticisms have been made of these approaches to global business? What are the strengths and weaknesses of these arguments?
Please explain the meaning of positive and negative externality. Discuss how the government can solve the problem created by a negative externality.
What are the main determinants of equilibrium of demand and supply? Which is likely to have more of an impact on supply and therefore market equilibrium:
As asset is purchased in September and is being depreciated over 7 years using MACRS 200% Declining Balance depreciation switching over to Straight Line Depreciation, with the mid month convention. In what year should the depreciation method be switc..
The domestic supply-and-demand diagram below represents a product in which the United States does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity?
How much tax an employee will pay in a tax year 2020-2021 based on receipts of following amounts pertinent to his/her salary and who will deduct the tax in such
Opponents of the minimum wage point out that the minimum wage:
You plan to borrow $2,000 in order to take a vacation and want to repay the loan in a year. The banker offers you the following two alternatives of repaying the loan. (1) a simple interest rate of 12% with repayments in equal instalments six months a..
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