moentary policy
a restrictive monetary policy is designed to shift the
Differentiate between APC and MPC. The value of which of them can be greater than another and when? Answer: APC is the average
What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Describe cost-push inflation and its major source.
The hypothetical information in the following table shows what the economic situation will be in 2015 if the Fed does not use monetary policy: Year Potential GDP Real GDP Price Level 2014 $15.2 trillion $15.2 trillion 110.0 2015 $15.6 trillion $15.8 trillion
The demand for a resource will increase if the
(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?
Diminishing prices will raise total revenue from DVD game sales at each and every price: (1) On this demand curve. (2) Beneath $25. (3) Above $25. (4) Beneath $30. Q : Export business prefer rising or Would export businesses choose a rising or declining dollar? Would it be similar for a European tourist on a budget and visiting the Grand Canyon? Explain your answer.
Would export businesses choose a rising or declining dollar? Would it be similar for a European tourist on a budget and visiting the Grand Canyon? Explain your answer.
For the firm, the major goal of profit sharing plans is to:
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