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According to the Keynesian Cross model, how would each of the following shocks affect real aggregate income (Y) in the short run, all else equal? For each shock, be sure to clearly state a predicted direction of change for income, illustrate your prediction with a Keynesian CrossDiagram, and explain your predictions intuitively in words.
a. Government purchases decline
b. Congress cuts household income taxes
c. Autonomous consumption increases
d. Total factor productivity increases
q1. illustrate what is a random walk? explain how is halls random-walk model of consumption related to the life-cycle
The incidence of a payroll tax is borne by both employers and employees. MRP represents what the marginal physical product is worth. If the MRP of labor is below the wage rate, the firm should lay off workers.
Prime Products manufactures specialized goods to customers' specifications and operates a job-order costing system.
What is the structure of the Fed? What is the difference between the Fed and the Treasury? What are the goals of the Fed? What actions are at the disposal of the Fed?
The just-in-time inventory system is designed to reduce the inventory period. In essence, companies pay their suppliers to carry the inventory for them. Reducing the inventory period reduces the operating cycle and thus the cash cycle.
There are two individuals with demand for streetlights Qd1 = 150 − P and Qd2 = 200 − P. The market supply of streetlights is perfectly elastic at P = 130. What is the price and quantity of streetlights if the market is competitive? Explain why street..
Define three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is -1.2 and not -0.8 as previously thought
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $25,000 per year. the owner was also contemplating using the additional space to rent video ..
Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent. What are the risks associated with pursuing such a strategy?
How well do the monetary policies enacted by the Fed regulate the national economy? Which of the monetary policy tools -- Open Market Operations, Discount Policy and Reserve Requirements -- seems to be most effective?
I will survey employees online using online surveys, is it an appropriate approarch to select a random sample? The variables I am thinking about are (Salary and Wages, Working Hours, Educational Level, Years of working experience, average base starti..
A new six-speed automatic transmission for automobiles offers an estimated 3% improvement in fuel economy compared to traditional four speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 31 miles per gallon and ga..
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