Concept of liquidity trap
Problem: During the deflationary Great Depression Keynes advanced the idea of a "liquidity trap." Please explain the liquidity trap is presently stopping the Japanese economy from recovering.
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Problem: Adverse selection in employment is more likely when: a. jobs require specific training. b. everyone is equally qualified for the job. c. people's abilities are easy to measure. d. people's abilities are difficult for potential employers to o
Theoretically, the President of the United States is suggesting increased spending for a missile defense system. He is also proposing a major long-term tax cut.
Problem: Using Human Capital theory (Becker, others), explain the relationship between skill and unemployment.
Unanticipated deflation redistributes income and wealth from borrowers to lenders.
Issue One: How does government spending affect the economy? Increase government spending (say to around 936) while leaving the gov budget parameter that sometimes appears at the bottom of the screen at one.
Price ceilings or price controls have the effect of A) decreasing quantity supplied and increasing quantity demanded. B) decreasing both quantity supplied and quantity demanded. C) increasing quantity supplied and decreasing quantity demanded. D) inc
Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment, output, real interest rate, consumption, investment, and price level. a) A reduction in the effective tax rate on
In each of the following scenarios, predict what will happen to: 1) Employment, 2) real wages, 3) output, 4) the interest rate, and 5) the price level
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