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1 .Any point to the left and below the IS-curve means that :
there is excess demand for goods and services in the expenditure sectorthere is excess supply of goods and services in the expenditure sectorthe expenditure sector is in equilibrium but the money sector is notthere is excess demand in the money sectorthere is excess supply of money in the money sector
2. Assume that the price level is flexible both upward and downward and that the Fed's policy is to keep the price level from either rising or falling. If aggregate supply increases in the economy, the Fed:
will have to increase interest rates to keep the price level from falling.will have to reduce the money supply to keep the price level from rising.will have to increase the money supply to keep the price level from falling.can keep the price level stable without altering the money supply or interest rate.
3. Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a $500 increase in taxes once all the rounds of the multiplier process are complete?
An increase of $500 in taxes causes equilibrium output to decrease by 1000.An increase of $500 in taxes causes equilibrium output to decrease by 2000.An increase of $500 in taxes causes equilibrium output to increase by 2000.An increase of $500 in taxes causes equilibrium output to decrease by 400.An increase of $500 in taxes causes equilibrium output to increase by 400.
Do you have frequently ended stock market rallies and led to declines in all major stock indexes.explain why rising oil prices have negatively impacted US equity markets.
Illustrate what is the minimum national loss if Canada is a small country that can not affect the world price.
Elucidate the difference among the statement "the money supply is fixed" and the statement "the money supply is exogenous".
Elucidate is the fiscal policy expansionary or contractionary.
Briefly describe and critically possible short-run and long-run macroeconomic effects of this continuous increase of the federal fund rate
Elucidate what term do economists utilize to describe this second outcome
Import Quotas also voluntary export agreements are often used instead of tariffs. What are the differences.
Explain how relevant to the real world do you believe this result is in the "contestable markets" view of the competitive process.
What would happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patents prevents other firms from using the new technology.
The company is risk neutral and so maximizes expected profits net of wages.
The organization have considered situations of just shifting the spending power among the competing sectors. Does anyone have any thoughts.
Illustrate what is the opportunity cost for Italy if they only produce 1 bushel of grapes? What about 1 computer.
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