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Draw a Keynesian cross graph and assume that macro economy starts and ends at equilibrium. Label the initial aggregate demand line AD0, Then show what happens in the diagram when a rise in consumer wealth raises C in your diagram. (This event might happen if the stock market or the housing market enjoys large price increases. You do not need to put numbers on the graph just indicate the direction of the change)
a) How does the AD line shift? Label the new line AD1
b) What is the initial effect of this change on inventories? How will firms change production in response to this change?
c) What happens to the equilibrium level of production, income, and spending? Does each rise, fall, or stay the same?
Assume the two newspapers merge. Illustrate what is the likely post-merger bargaining outcome.
q1. if real salaries increase but nominal salaries do not what can be said of prices on average?q2. he second year of
Find out equilibrium cost and quantity. Illustrate on your graph how a rise in cost of automobiles would affect gasoline market.
Describe in 100 words or less the condition of “full employment” and explain why, even under the conditions of full employment, there is still a percentage of the labor force who are not working.
If a bank reserves of $100 million and checking deposits of $700 million, how much are the bank's: (a) required reserves? (b) excess reserves?
Interest on the public debt is included as a part of government purchases in the determining GDP may arise since.
Explain what does efficiency prevail in the Gilroy labor market. If not, what is the size of the deadweight loss. you must use a diagram and show the appropriate values on it.
What is the effective borrowing rate on this home mortgage loan?
q.a consumer who conforms to the von neumann morgenstern axioms is faced with four situations a b c d. he prefers a to
According to the Congressional Budget Office estimates, output was 2.9% below potential output in the 4th quarter of 2014. The unemployment rate was 5.7%. What was the implied natural rate of unemployment?
Compute the profit-maximizing price and output levels assuming Pear acts as a monopolist for its product. Determine the total contribution to profits and fixed costs from the solution generated in Part (a).
q.1. a. differentiate between monetary policy instruments and monetary policy toolsb. describe the two key tools of
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