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1 unemployment is no longer a social problem because unemployed workers receive unemployment benefits and other
1 if an earthquake destroys some of the factories in poorland what happens to poorlands potential gdp what happens to
country a and country b have identical population growth rates of 1 percent per annum and everyone in each country
which of the following transactions are included in the gross domestic product and by how much does each raise gdpa you
more difficult between 2007 and 2008 real disposable income in 2005 dollars barely increased at all owing to a
1 comment on the following sharp changes in the volume of investment in the united states help explain both the
two countries have the production possibilities frontier ppf shown in figure 3 consumia chooses point c whereas
1 show on a graph how capital formation shifts the production function use this graph to show that capital formation
1 what are the four main components of aggregate demand which is the largest which is the smallest2 which of the
1 what is a consumption function and why is it a useful device for government economists planning a tax cut2 explain
suppose exports and imports of a country are given by the followingcalculate net exports at each level of
1 explain the basic logic behind the multiplier in words why does it require b the marginal propensity to consume to be
1 in each of these cases how much saving is there in equilibrium hint income not consumed must be saved is saving equal
consider an economy in which tax collections are always 400 and in which the four components of aggregate demand are as
suppose a worker receives a wage of 20 per hour compute the real wage money wage deflated by the price index
1 now raise exports to 650 and find the equilibrium again how large is the multiplier2 explain the logic behind the
fredonia has the following consumption functionfirms in fredonia always invest 700 and net exports are zero initially
find the equilibrium level of gdp demanded in an economy in which investment is always 300 net exports are always 2-50
1 give two different explanations of how the economy can suffer from stagflation2 why do you think wages tend to be
1 since 2008 a rash of bank failures has occurred in the united states explain why these failures did not lead to runs
1 excess reserves make a bank less vulnerable to runs why then dont bankers like to hold excess reserves what
more difficult in the economy considered in test yourself question 3 suppose the government seeing that it has not
this question is a variant of the previous problem that approaches things in the way that a fiscal policy plan ner
you are given the following information about an economya find equilibrium gdp and the budget deficitb suppose the
1 when the income-tax rate declines as it did in the united states early in this decade does the multiplier go up or