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What fiscal policy (or policies) is/are typically used to close a recessionary gap? Draw the Aggregate Demand and Supply model showing the changes in Price levels and Real GDP-make sure your illustration clearly shows the recessionary gap.
As part of their chores on Saturday mornings, they have to clean the bathrooms also wash the floors of the house while their parents go grocery shopping.
a) What are the expected one year interest rates next year and the following year? b) If the risk premiums were all zero, as in the expectations hypothesis, what would the slope of the yield curve be?
Assume the same initial demand and supply equations as we did in class for the gasoline market: Qd = 150 – 25P and Qs = 60 + 20P. Quantity is measured in billions of gallons. What is the tax equilibrium if the per unit tax is $2 per unit? What is the..
Carl has a utility function U(x, y) = 2xy + 1. Maximize his utility subject to the budget constraint and derive his demand functions for x and y.
Calculate national income form the following figure-consumption: 200 billion. if there were 80 million people in this country, what would the GDP per-capita be? if all prices were to double overnight, what would happen to the values of real and nomin..
Illustrate what makes measuring economies of localization or economies of urbanization difficult.
As a currency appreciates:
What does the term "INTEREST RATE INVERSION" refer to? For the past several years, the Federal Reserve System has forced short-term interest rates to nearly zero. Why has it not been able to do the same for long-term interest rates? Explain
Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend.If he belonged to the club, he could buy good 2 ..
How would equal educational achievement and equal income.
Seven years ago a New Brunswick logging company purchased a used wood chipper for $141,600 for biomass and custom chipping. Operating and maintenance costs averaged $4,100 per year. A complete overhaul at the end of year 4 cost additional $12,000. An..
Is GDP a Good Measure of Economic Well-Being? If GDP is a good measure of well-being, why is Switzerland’s GDP so much lower than India’s GDP or China’s GDP? What measures would be better to compare the well-being of different countries? How do you e..
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