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Go to the BEA website www.bea.gov. On the left tab under Publications, go to the Interactive Data Tables. Select National Income and Product Accounts. From Table 1.1.6 and 1.1.7 examine all four components of GDP (C, I, G, and Xn). Which of these four components of AD declined the most during the 2007 and 2009 recession? Do you think an increase in government's spending (G) can boost the Aggregate Demand (AD) in a recession? Analyze why the economy may operate below full-employment GDP in the short run. How can the multiplier have a negative effect? What is the relationship between the multiplier and the marginal propensities? Explain.
Calculate the expected annualized compound rate of return over the five years for each bond. Which bond offers the higher expected compound rate of return?
Among which of the following will cause an increase in producer surplus. Which of the following causes a shortage of a good.
Adding four or more flights to existing routes, it will have to add two pilots also flight attendants.
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
Explain your answer the economy experiences an unexpected recession; the price of Good Z increases. The price of Good Y increases; the price of Good Z increases.
What can you say about the level of the real interest rate if people instead are risk averse.
Green home is define as an Energy Efficient Home using Energy Star Rating. The cost doesn't have to be exact, all I need is how to formulate my Cost Benefit Analysis and how to compute my ROI or Pay Back Time.
A construction company is bidding on a project comprising five high-rise buildings to be erected one after the other.
Elucidate what will happen to the equilibrium price and quantity of pizzas sold and why (which curve has changed) for each of the following situations:
A Chinese retailer offers to purchase running shoes for $55 per pair and tennis shoes for $55 per pair for distribution in China. Should the shoe company sell any shoes to the Chinese retailer?
Elucidate what do the opponents of globalization criticize. With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling.
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