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1. Aggregate Supply curve shows the relationship between the price level and the real GDP supplied in an economy.
a. Under what circumstances the AS curve will have a flat segment?b. When an economy has a vertical AS curve?c. The AS curve is upward sloping in the intermediate region between the horizontal and the vertical segments. What kind of macroeconomic conditions give rise to the upward sloping range?
2. What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks?
a. What is the role of the simple multiplier [ 1/{1 - MPC(1 -t) -m}] in stabilization of the swings in real GDP?b. How the slope of the AD curve affects the stability of real GDP in the presence of AS shocks?c. How the automatic stabilizers depend on the sizes of MPC,t, andm.
The State Department of Transportation has called for tenders to supply 10,000 gallons of blue reflective paint to be delivered within two months. You can foresee fitting in a production run of the blue paint and have decided to bid on the job.
why do keynesian economists believe market forces do not automatically adjust for unemployment and inflation? what is
Edision Electric Company's president has been arguing that residential electric rates need to be raised relative to industrial rates. His reason is that the rate of return that company earns on its assets is higher from its industrial customers
Using the Solow model consider the effect on the economy of a reform that eases the immigration procedure leading to an increase in the rate of immigration. Discuss also using graph.
Suppose that the government places a ceiling on the price of a medical drug below the equilibrium price. Explain why there is a shortage of the medical drug at the new ceiling price.
An old covered bridge can be strengthened at a cost of $9000, or can be replaced for $40,000. The present salvage value of the old bridge is $13,000. With reinforcements, it will last for an additional 20 years with $500 annual maintenance and have a..
What would be the production possibility frontiers for Brazil and the United States and without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
How is the real GDP calculated from the data and how is the growth rate of GDP calculated from the given data? Fill in the missing values of the growth rate of nominal and real GDP in the table.
Which kind of unemployment is most closely connected with the saying "you can't teach old dog new tricks"?
The problem is belongs to Economics and it is clarify about how open market operations can affect interest rates set up by the Federal Reserve. This has been discussed in the answer.
There are many common threads running through and linking all of these assignments, write about the commonalities which link all of these topics together when doing business overseas.
"Cyclical unemployment is always present in the economy." Do you agree or disagree with this statement? Why?
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