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What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this rise or fall in the le
Problem 1: Which of the following transactions would not be counted in GDP? Explain your answers. 1) American airlines merges with US Airways 2) Walmart's inventory decreases.
The consumer price index is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year.
Q1. Suppose the money supply is set by the central bank at $1,198,000. What is the equilibrium interest rate? Q2. Suppose income decreases from 1,000,000 to 999,000 determine the new equilibrium inter
Explain why business and consumer expectations about the economy are more important when the Fed uses expansionary monetary policy then contractionary monetary policy.
A: Calculate the rate of inflation according to both measures from 1979 through 1982.
What is the basic cause of the business cycle? How does structural unemployment differ from cyclical unemployment?
Problem 1. Contrast the Keynesian and Monetarist views on how a change in the money supply impacts the economy? Explain. Problem 2. Discuss the determinants of the equilibrium interest rate and how it
What is a Phillips curve? Assuming the economy's aggregate supply curve is stable, how would an increase in aggregate demand affect the unemployment rate and the inflation rate?
What fiscal policies and monetary policies would be appropriate at this time? Please help me explain data trends on unemployment, inflation, GDP growth, expasionary fiscal policy tools.
Is the Fed controlled by Congress or the executive branch of the government? What are the three tools the Fed has available to influence the economy? What can it do today to get the economy to recov
Do you think banks can self regulate themselves? One would think that they should be held accountable for their mistakes but as we have seen, Uncle Sam came to rescue many of the banks for certain b
What are the advantages and disadvantages of free trade? From an economic point of view, is free trade better than limited or no trade? Have you benefited from free trade? how?
Go to the Bureau of Economic Analysis at() and look up the latest new release for real GDP. Address the following questions after reading the latest release: Where is the United States in the busin
Do protectionist policies benefit producers, consumers, workers, or the government? Explain. Also please explain how the "Buy American" theme hurts Americans.
Problem: Is the state of the USA designed to replace the GDP with a primary measure of economic performance?
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is imp
Is the country's foreign exchange overvalued or undervalued? Has the central bank intervened in the foreign exchange market on behalf of the country's currency valuation?
Problem 1: Suppose you are in charge of U.S. fiscal policy and the economy is in recession. What would you do? Problem 2: Assume the economy is booming and in danger of "overheating." What would you d
1) Why did I choose to make the demand elasticity for plastic surgery large relative to heart surgery? 2) What is the equation for the optimal (Ramsey) value of th in terms of tp.
The federal reserve has announced an end to their controversial quantitative easing bond purchase program. How will the economy react to this decision?
Question 1: How would each of the following affect the Canadian market supply curve for wheat?
Draw a representative long-run average cost curve, and indicate the minimum efficient scale. Would you expect that firms in an industry like this would all produce about the same level of output? Why?
Suppose there is a temporary but significant increase in oil prices in an economy with an upward-sloping Short-Run Aggregate Supply (SRAS) curve.
What effect has this on the price and yield of US treasury bills and bonds with a maturity of 1 month, 3 month and 3 years and how does it affect the shape of the US yield curve.