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Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions and include the trade-offs or opportunity costs.
Suppose that a perfectly competitive company is currenly producing 5,000 units of output and is earning $10,000 in total revenue.
Which combination of fiscal policy actions would most contractionary for an economy experiencing severe demand-pull inflation.
Explain why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession.
Explain how the US government managed to accumulate a debt of over 14 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
Elucidate measures the fed should take to reduce the unemployment rate and expand the economy.
Illustrate what is the basic objective of monetary policy. What are the strengths and weaknesses of monetary policy.
Reflecting back on what you learned about sustainable management practices throughout this quarter; determine 5 activities that illustrate sustainable management of resources that you pursue in your everyday life.
Between your answers to parts b and c, which prices/capacity are best applied from a social welfare perspective? Why?
If there is an increase in the government budget deficit _______. the demand for loanable funds will increase, interest rates will increase, and the amount of borrowing will increase, the demand for loanable funds will decrease, interest rates will d..
The price elasticity of demand for both tissue has been estimated.
What do you think large corporations like Microsoft and WalMart should be regulated more or less than they are.
Describe why the demand curve facing a monopolist is less elastic than one facing a firm that operates in a monopolistically competitive market.
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