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In 2015, the U.S. federal government increased government spending (G) by $56 billion. This question has you both illustrate and explain the short- and long-run effects of these fiscal adjustments.
(a) Using the short-run model, show the impact of increased government spending on the inflation rate and short-run output.
(b) On the diagram(s) above, show how the central bank would respond to the increase in government spending.
(c) In terms of the short run model, how did the increase in G impact the other components of spending (C, I, and NX)?
(d) In terms of the basic growth (Solow) model, what does the increase in G mean for eoconomic growth? Be clear.
The cost of fuel for a smelting operation are expected to be $50000 in year three,$52500 in year four and amounts decreasing by 5% per year after through year ten. at interest rate of 8% per year, calculate the present worth of the fuel cost.
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Joe won $365,000 a year for life in the state lottery. Use the labor-leisure choice analysis to answer the following. show how Joe's lottery winnings affect the position of his budget line. Joe's utility function for goods per day (Y) and hours of le..
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Conduct original research on an American Economic History event that occurred between 1900 - 1960. (you cannot do the Great Depression or Prohibition) . I chose The Great Mississippi Flood of 1927, but my professor said " Your topic on the Mississipp..
Which type of industries would make the most use of short-range forecasts? Which would make the most use of medium-range forecasts? Which would make the most use of long-range forecasts? Why?
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both.
Explain how will this event affect the equilibrium price and quantity of Florida oranges.
q.abc sweaters are greatly admired by their aficionados. the demand for these sweaters is given by q 13 - 0.02 p where
An open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders..
What price will the firm charge in each market? Based solely on these two prices, which market has the higher price elasticity of demand? What will be this monopolist's total economic profit?
What is the point forecast of sales in the next time period? What is the 95% forecast interval for the next period’s sales figure? (use z = 1.96)
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