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Suppose that? currently, the economy is overutilizing its resources.is overutilizing its resources. Which of the following correctly describes what type of monetary policy the Fed might choose and how the policy would change the? economy?
a.The Fed could use a contractionary monetary policy to reduce short - run aggregate supply and GDP.
b. The Fed could use an contactionary monetary policy to reduce aggregate demand and GDP.
c. The Fed could use an expansionary monetary policy to increase aggregate demand and GDP.
d. The Fed could use an expansionary monetary policy to increase short − run aggregate supply and GDP.
Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reduced.
illustrate what can you say about the price elasticity of demand for DVD players. Will this price reduction necessarily lead to an increase in profits for DVD player manufacturers.
The football coach at a midwestem university was given a 5-year employment contract that paid $225,000 the first year and increased at an 8% uniform rate in each subsequent year. At the end of the first year's football season, the alumni demanded tha..
If I country decides to have a fixed exchange rate, what can it do to ensure it's value is kept proportially the same to another currency and what are the advantages/disadvantages to a fixed exchange rate?
The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment. Therefore this will..
Festwalia has two types of workers: low-skill workers, who earn $10 per hour, and high-skill workers, who earn $20 per hour. The government of Festwalia currently imposes a 20% proportional tax on all labor earnings. It is considering replacing this ..
Explain how the market for corn would be affected if ethanol, a corn derivative, was used to fuel cars in the united States. How would the market be effected if new technology cause corn farming to be more efficient.
Your brother has decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of his present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto deale..
Suppose that the paper clip industry is perfectly competitive. Also assume that the market price for paper clips is 2 cents per paper clip. The demand curve faced by each firm in the industry is: Always higher than the firm's MC curve. A horizontal l..
What is the linear relationship between Fahrenheit and Celsius? Since the relationship is linear, you only need the following two points to calculate the relationship.
Among the four types of unemployment, identify the economically best type and explain why it’s the best. Identify the economically worst type of unemployment and explain why it’s the worst. What type of unemployment are workers least likely to experi..
Identify the critical operations decision areas in an organization and discuss the responsibilities of an operations manager while addressing these decisions.
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