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The economy is in a boom and the inflationary gap is large
a. Describe the discretionary and automatic fiscal policy actions that might occur
b. Describe a discretionary fiscal restraint package that could be used that would not produce serious negative supply-side effects.
c. Explain the risk of discretionary fiscal policy in this situation.
what is a consumption function? describe the graph of a consumption function and explain its shape. if total spending
Does increasing government budget surplus leads to current account surplus?
let qs -1000 5.5p and qd 25000 - 2.5p be the supply and demand relationships respectively for a competitive
What about lowering interest rates and increasing money supply (i.e., monetary policy) If you were the chair economic advisor to the President of the United States, what would be your advice to him What does the Scripture have to say about money
Based on the reading assigned for this module, and your own Internet research, what adjustments are required for China to rebalance its current account. What risks are inherent in such adjustments
Most customers tip according to a percentage rule between 15 and 25 percent of the bill.diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.
Suppose that in an economy a $40m increase in consumption leads a $200m increase in national income. Calculate the value of this economy's marginal propensity of save.
(Money Supply Versus Interest Rate Targets) Assume that the economy's real GDP is growing. a. What will happen to money demand over time b. If the Fed leaves the money supply unchanged, what will happen to the interest rate over time
1 a friend whom you are studying with for this class has drawn three sets of indifference curves. explain what he has
in costa rica only a few beaches remain that are nesting grounds for sea turtles. some of those beaches have
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you are the manager for dunkin donuts and know the following elasticitieseta 1.5eta i 1.2eta xy1 0.5eta xy2 -0.5eta
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