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Q. Answer the following question using the Keynesian Model of a closed economy. Suppose the Federal government would like to increase output in the short-run and will engage in expansionary fiscal policy. The President contacts you, the Chair of the Federal Reserve, and asks you to take action to keep interest rates close to where they currently are.
a) What action do you take? Illustrate and explain the movements of the IS and LM curves.
b) Illustrate and explain the movement of the aggregate demand and aggregate supply curve both in the short and long run. What potential long term effect should you warn the President about?
disposable personal income decrseases by$15 billion and the trade deficit is reduced by $5 billion. Explain by how much have investment, consumption and national income changed.
They are all highly populated areas with target markets suitable for your products. One factor is which there several formidable competitors in all of the areas
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
B involves the polluters in each region independently negotiating pollution deductions, assuming the other region is not undertaking pollution reduction.
Now suppose Alex's income increases to $1,500 per year. What is her new optimal consumption of x? What is her new optimal consumption of z?
Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific company by identifying its market..
Decreasing returns to scale refers to a situation where an increase in a firm's scale of production leads to lower costs every unit produced.
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project, where the cost of the lawsuit might range from $10,000 to $500,000 with an associat..
A battery in a critical tool fails at 32 hours. Illustrate what is the probability it was from manufacturer 2
Business has only one social responsibility-to make profits (as long as it stays within the legal and moral rules of the game establised by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by..
If the marginal revenue from a product is $15 and the price elasticity of demand is ?1.2, what is the price of the product?
Extend this comparison by choosing a different point on this period's PPF and discuss whether that combination leads to more or less growth over the next period.
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