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You are the Chairperson of the Federal Reserve, the date is June 2009 and a recession is ahead. Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply graph, an Investment graph, and a GDP graph to show how monetary policy effects GDP. You also need to use the money multiplier, MPC and the GDP multiplier on the GDP graph.
Explain how would each economist explain unemployment and what policies would each advocate.
A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters (mail outs) to potential voters in an election campaign. Describe the "production function" for campaign votes.
Approx the marketplace demand curve and figure the existing Price elasticity of demand
Suppose the Fed expands the money supply, but because the public expects this Fed action, it simultaneously raises its expectation of the price level. What will happen to output and the price level in the short run
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
Illustrate what is the difference among National Income, Gross National Product, and Gross Domestic Product? Why do most countries now use GDP as a measure of national output?
Suppose that Melanie had 200000 of disposable income and spent 180,000 on consumption in 2006 & had 300,000 of disposable income & spent 240,000 on consumption in 2007
Three factors make analysts more optimistic: Companies are cutting production, weekly egg-set numbers are declining (egg sets are fertile eggs placed in incubators), and prices are responding positively to the decreasing supply. The ..
Supply demand analysis to elucidate how the prices of untaxed consumption items can be affected by the retail sales tax even though they are not subject to taxation.
Assume that James owns a wheat farm that produces an annual crop of 500 bushels. His only choice is to store it in a nearby grain elevator owned by Martin
In the US, steel production has remained constant since the 1970s at about 100 million tons per year. Large integrated companies, like United State Steel, remain important in the industry, but roughly 50%.
Explain why is it wiser for the government to put a sales tax on a good that is demand inelastic than on one that is demand elastic.
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