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a. Why does a horizontal LM curve imply that fiscal policy has the same effects on the economy as those derived in Chapter 9 ?
b. What is happening in this case in terms of Figure 10-3 ?
c. Under what circumstances might the LM curve be horizontal?
The situation is the same as in 1, except that the extraction costs per liter are different every period and now they given by; c1=$10, c2=$20 and c3=$200. What are the optimal extraction plan and the present value of the profit
problemthe dataset phillips.dta contains information on the civilian unemployment rate and the cpi inflation rate.nbsp
You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year, and that 60 percent of all tourists traveling to Florida by air rent automobiles.
Suppose that the market (in the graph above) is initially in equilibrium. Assume that consumer preferences shift and people want more of this product, and, at the same time, producers get an improvement in technology which lowers their production ..
Suppose that the Durbin Watson test is applied to a regression containing two explanatory variables plus a constant (e.g. equation 2 above) with 50 data points. The test statistic takes a value of 1.53. What is the appropriate conclusion
Explain the intended effect of extending tax cuts to middle-class Americans but not for high-income families. Draw a graph to illustrate the intended effect. Explain why the effect of tax cuts depends on who receives them.
Some laboratory equipment sells for $75,000. The manufacturer offers financing at 8% with annual payments for 4 years for up to $50,000 of the cost. The salesman is willing to cut the price by 10% if you pay cash. What is the interest rate you wou..
elizabeth M. suburbs makes $200 a week at her summer job and spends her entire weekly income on running shoes and designer jeans, because these are the only two items that provide utility to her. Furthermore, Elizabeth insists that for every pair ..
advanced analysis given the following diagrams q1 12 bags. q2 7 bags. q3 19 bags. the market equilibrium price point
Consider the following version of the Stackelberg model. There are two firms, 1 and 2. 1 is the leader and chooses its quantity first. 2 is the follower and chooses its output after 1 chooses. They produce identical goods and so if q1 = is 1's out..
The overall population for Region A is 125 million people. The workforce contains 67 million people. 38 million people are employed, while 29 million are unemployed. What is the unemployment rate
Using the tools during development will reduce the MCS projects' Language and Toolset Experience rating from Nominal to Low. During maintenance, the experience with the tools will return the rating to Nominal. The cost of the tools is $500K.
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