Q: How might a “perfect” macro equilibrium (Figure 9.
How might a “perfect” macro equilibrium (Figure 9.10a) be affected by (a) a stock market crash, (b) rising home prices, (c) a recession in Canada, and (d) a spike in oil prices? z/
See AnswerQ: When unwanted inventories pile up in retail stores, how is production
When unwanted inventories pile up in retail stores, how is production affected? What are the steps in this process?
See AnswerQ: How can equilibrium output exceed full-employment output?
How can equilibrium output exceed full-employment output?
See AnswerQ: What forces might turn an economic bust into an economic boom?
What forces might turn an economic bust into an economic boom? What forces might put an end to the boom?
See AnswerQ: Why might “belt-tightening” by consumers in a recession
Why might “belt-tightening” by consumers in a recession be unwelcome?
See AnswerQ: How can you tell if the economy is in equilibrium? How
How can you tell if the economy is in equilibrium? How could you estimate the GDP gap?
See AnswerQ: How did consumers spend their 2008 tax cut? Does it matter
How did consumers spend their 2008 tax cut? Does it matter what they spend it on? Explain.
See AnswerQ: What happens to aggregate demand when transfer payments and the taxes to
What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the same amount?
See AnswerQ: Will consumers always spend the same percentage of any tax cut?
Will consumers always spend the same percentage of any tax cut? Why might they spend more or less than usual?
See AnswerQ: How quickly should Congress act to remedy an AD excess or AD
How quickly should Congress act to remedy an AD excess or AD shortfall? What are the risks of quick fiscal policy responses?
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