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While referring to the "EYE on YOUR LIFE" section on, discuss the macroeconomic policy issues facing the U.S. economy today based on the economic concepts you have learned in this course.
• Does our economy have a recessionary gap or an inflationary gap?
• Are you more concerned about the provision of public services, the size of the budget deficit, or the size of the tax wedge?
• If you are more concerned about the provisions of public services, would your preferred fiscal package include increased spending? If so, on what programs? How would you pay for the expenditure?
• If you are more concerned about the size of the budget deficit, how would you propose lowering it? What public services would you eliminate to achieve a smaller deficit?
• If you are more concerned about the tax wedge, would your preferred fiscal package include tax cuts? If it would, what public services would you cut to achieve lower taxes?
use a graph of the classical labour market to illustrate the effects of a real wage existing in the market that is lower thhan the equilibrium real wage
You have 300 right now. You invest into an account and 12 years later your investment will be 8 times of the initial investment. What the investment rate if a) The bank pays sim
The Phillips curve in Lowland takes the form of ? = 0.04 - 0.5 (u - 0.05), where ? is the actual inflation rate and u is the unemployment rate. The Phillips curve in Highland takes
What will happen to the shape of the money demand curve if the checking accounts bear interest? will it still slope down if the interest of the checking account is fixed while the
Why is quantitative easing used during liquidity trap when it lowers interest rates too?
farmer grows a bushel of wheat & sells it to a miller for Rs. 1.00. The miller turns the wheat into flour & then sells the flour to a baker for RS. 3.00. The baker uses the flour
Process to control inflation rate The belief that control of inflation must be the primary economic objective of government can be traced back to neo-liberal revolution that st
what is meant by PPF?
Explain the adjustment to the new equilibrium price from an increase in demand.
What is the difference between heckscher_olin theory and comparative theory
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