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Explain how the Great Depression weakened the popularity of classical economics and opened the way to Keynesian economics.
The Great Depression was fairly criticized because of the classical economics it adopted wherein Government was not allowed to intervene in making structural changes and monetary policy using interest rates and open market operations was adopted. All this led to inefficiency in market and deflationary curve leading to bankruptcy and massive depression. Hence Keynesian view was later adopted with expansionary fiscal policy.
Explain completely the mechanism through which a change in the following will change the money supply, M1.
a. What is the equilibrium price and equilibrium quantity? b. What is the price elasticity of demand at the equilibrium?
Discuss an increase in the personal income tax will slow the growth rate of the economy.
Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?
Use the table to answer questions. Using the table provided in Step 1, answer the following questions in a one-page (250-word) document: Determine the opportunity cost of additional production at different outputs. Determine which particular combinat..
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the book keeping tasks are done man..
Consider the AD/AS model of the economy built from the IS/LM, and assume that the SRAS is upward sloping. The economy is currently operating at the full employment level of output. What are the short-run effects of the decrease in the MPC? What are ..
Have you witnessed signs of recovery in our region of the country? In what stage of the business cycle are we in?
If aliens come and take a large percentage of our cows what happens in the market for synthetic leather baseball gloves? (Assume a normal competitive market)(Show the graph, label all relevant points, and explain what happens to price and quantity. E..
(a) If you charge a price per minute, what is the optimal price?
In general, correcting income distribution data for taxes and transfer payments results in:
After the horrific terrorist attacks that occurred in the United States on 9/11/2001,a PR firm represented the Allied Pilots Association in that organization's campaign to gain airline pilots the right to carry guns in the cockpit. What type of resea..
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