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Assume you run the central bank of a large open economy with floating exchange rates. Output, unemployment and inflation are where you want them to be. Now the fiscal authorities pass a large tax cut. What policy should you follow to stabilize output? What effects do you anticipate?
Provide a clear discussion of at least one economic issue raised in the article in your own words. Why is this story/topic/issue significant for macroeconomists?
What role does labor play in the role of prices and value in Menomonie? What sorts of jobs and salaries are available in town and why are some jobs readily available and others snapped up quickly?
If Abacus charges a uniform price for a unit of accounting service (Q), what price must it charge per unit, and how many units must it produce per time period in order to maximize profit? Calculate the consumer surplus.
The truth is out there. Echoed many times, the proposition that the truth is out there contains great weight when pondering whether there is or is not an absolute truth in the universe. Discuss the following points:
Suppose the correlation of returns between Czech and Slovak was -1.0. What is the standard deviation of Ms. Tomato's portfolio?
Suppose that the town of Grayrock had a population of 10,000 in 1998 and a population of 12, 000 in 2003.
Take a stand on whether or not it would be easier for the Federal Reserve to expand the supply of money in a period of prosperity versus in a period of recession. Money must have material backing to have value.
Identify how Capital ratios (i.e capital requirements) affect Economic Growth (GDP movements) and Household Consuption for USA and China+India
"Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices"
Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed. Specifically, what sorts of changes in the assumptions would weaken the effects of monetary policy?
Explain how the agency problems have played a role in different parts of the economy: moral hazard (unobserved effort), and adverse selection (unobserved type).
To what extent does the monopolistic competition model accurately reflect the taxi market in victoria?
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