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1. Distinguish between the expenditure lag and the policy lag in stabilization policy. Does monetary or fiscal policy have the shorter expenditure lag? What about the policy lag?
2. Explain why their contrasting views on the shape of the aggregate supply curve lead some economists to argue much more strongly for stabilization policies to fight unemployment and other economists to argue much more strongly for stabilization policies to fight inflation.
stephen zehnder an enterprising engineer wants to get into business. he is looking at the following two alternatives.
What happens to your answers to (a), (b), and (c) if sellers of high-quality cars have a reservation price of $9,500 instead of $11,000?
Which combination(s) in part (c) lie inside the affordable set, and which lie on the boundary?
Assuming that other factors affecting the money markets did not change too dramatically, how do these numbers match up with the predictions of this chapters model? How would you explain the apparently different responses of U.S. compared with Braz..
List and explain the ways by which firms usually finance their investment projects. Explain the rate of returns required by each method of financing. What are the implications of multiple ways of financing for a firm, each with its own rate of ret..
Elasticity measures how responsive consumers are to various changes. These include changes to the price of the product, to the price of substitute products, and even to changes in their own incomes.
Thinking globally . Acid rain is an example of a negative externality that spills across national boundaries. Using the internet, find out what kinds of actions have been taken to correct this negative externality.
How might governments attempt to influence long-run aggregate supply and there-fore potential GDP?
Automotive Rebuilders, Inc., is considering a new automated assembly line to automate assembly of rebuilt alternators. The new line can be installed for $525,000 today and will have a life of 9 years until technological obsolescence.
Assume that Y = real GDP. Then from the expenditure approach, Y = C I G NX. On p. 306 Exhibit 14.10 of the textbook, all C, I, G, and NX are the non-price determinants of AD. Suppose we use C, I, G, and NX as indicators during business cycles, the..
Analyze Rita's last statement: "We really don't communicate very well." What is the status of managersubordinate communication in this work relationship?
Which approach has had the greatest successand/or failure as measured in an alliance scorecard (see Kaplan, Norton, andRugelsjoen's 2010 article)? Be sure you support your conclusions with validatedreferences.
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