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1. Draw a real expenditures curve on a graph showing a recessionary gap. Explain what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
2. Draw a real expenditures curve on a graph showing an inflationary gap. Explain what happens to real GDP when it is initially to the left of the equilibrium point and why. Indicate two public policies that would be appropriate for addressing this situation. Explain their impact on your graph.
3. Explain with the aid of a graph why a "self-correcting" recessionary gap cannot be relied upon to bring an economy out of recession.
Outline reasons why the marginal revenue product differs between workers in different jobs.
The moral hazard is the degree of risk that the insurance company is taking in order to provide coverage on the individual.
Explain how can multiplier have a -ve effect. What is the relationship among the multiplier as well as the marginal propensities.
the mainstream theory of the business cycle, is the most common source of reciession: a decrease in aggregate demand, a decrease in aggregate supply, or both.
The cost of the grapes may be as much as 60% of total production costs but varies greatly from lower-quality inexpensive wines to the highest quality wines.
Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.
The banking system is a fractional reserve banking system with a desired reserve deposit ratio. Banking system is a fractional reserve banking system.
Explain why the food stamp program can have the same effect on the consumption pattern and well-being of recipients as an outright.
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds.
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
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