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For each of the following statements, specify whether a Keynesian, a monetarist, or a classical economist is most likely to support it, and explain in 1-2 sentences why. (Note: each economic view may be used more than once or not at all.)
A) “During a recession, government spending should be minimized. The Federal Reserve should focus on maintaining a constant growth in the money supply to help revive the economy.”
B) “Expansionary fiscal policy can help bring an economy out of a slump such as the Great Recession or Great Depression.”
C) “Markets should be left to correct themselves on their own, without any outside policy interventions.”
D) “Unemployment gravitates around a constant rate known as the Non-Accelerating Inflationary Rate of Unemployment, or NAIRU, implying a short-run trade off between inflation and unemployment.”
The Newspaper reported that insurgents in Saudi Arabia had taken over a major oil refinery. What would you predict would happen to the average price and quantity exchanged in the market for gasoline in Saudi Arabia?
with the aid of a diagram explain how a floating exchange rate is determined. Explain how will a depreciation of the rand influence our exports and imports.
Calculate the marginal cost function. What is Chill man's profit-maximizing cost as well as output combination.
he R. J. Jones Company is a publisher of cowboy novels - novels about the great western experience, where men were men, horses were horses also well, you get the idea.
What is the investment objective and top 5 holdings for the real estate security: TIREX (look in yahoo finance). Are the holdings consistent with the investment objective? Is the Fund highly diversified? Explain. Where is it traded? What is the minim..
Suppose that aggregate planned expenditure increases by $0.75 trillion for each $1 trillion increase in real GDP. If investment increases by $1 trillion, calculate the change in the quantity of real GDP demanded if the price level is constant at 105.
Explain how the price-specie-flow mechanism operates to maintain balanced trade between countries. What are the assumptions that are critical to the mechanism's successful operation?
Explain why physician groups and health service workers’ unions prefer stricter licensure requirements rather than cost control efforts from legislators. What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a d..
The existence of non pecuniary benefits associated with education causes estimated rates of return to education to _______ the actual rate of return for a typical individual.
The lower the interest rate, the lower the:
Find the present-value equivalent to the following geometrically increasing series of payments.
Graph the demand curve on a standard supply and demand graph. What is the quantity demanded of corn at a price of $6.00 per bushel? at $4 per bushel? Using the midpoint formula for the price elasticity of demand, calculate the price elasticity of dem..
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