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In the fall of 2003, many analysts predicted that the dollar would fall in value relative to other currencies because the trade deficit in the United States had become too large. What effect would a fall in the dollar have on growth in the rest of the world?
Find two articles about a macroeconomic problem currently in the news from either a newspaper or news magazine.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Define the union wage gain and the union wage gap. Why should we care about the magnitude of the union wage gain? Why should we care about the magnitude of the union wage gap? Under what conditions will the union wage gap provide a reasonable est..
In a certain economy, the multiplier for government purchases is 2 and the multiplier for changes in fixed taxes is 1.5. The government then proposes to raise both spending and taxes by $100 billion.
The Employment Act of 1946, passed by the U.S. Congress after World War II, a. made the Federal Reserve responsible for achieving and maintaining full employment b. identified specific behavior and targets for the conduct of U.S. foreign aid
To maximize total income should the price be increased or decreased
Explain what was happening to the economy in terms of the AS/AD model, including what would need to happen to bring us out of the "recessionary gap". In other words, using the AS/AD model as a starting point, explain the economic situation of 2008..
Explicidate key macroeconomic variables which affect your industry.
a.) Lisa consumes only pizzas (P) and burritos (B). Her utility function is U=P^0.5 B^0.5. The price per pizza is $10 and the price per Burrito is $5. In equilibrium, Lisa consumes 4 pizzas. Using Lisa's utility function, calculate how many b..
An engineer wishes to have $5 million by the time he retires in 40 years. Assuming 15% nominal interest, compounded continuously, what annual sum must he set aside?
What do you think about current and projected budget deficit [over 500 Billion this year and coming years] and do you support Bush's economic policy to cut tax and run the Federal government through lending?
What will happen to the equilibrium level of GDP if investors become optimistic about the country’s future and raise their investment to $600?
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