Q: Explain why a decrease in the price of foreign oil shifts the
Explain why a decrease in the price of foreign oil shifts the aggregate supply curve outward to the right. What are the consequences of such a shift?
See AnswerQ: Explain in words why rising prices reduce the multiplier effect of an
Explain in words why rising prices reduce the multiplier effect of an autonomous increase in aggregate demand.
See AnswerQ: If the government decides that aggregate demand is excessive and is causing
If the government decides that aggregate demand is excessive and is causing inflation, what options are open to it? What if the government decides that aggregate demand is too weak instead?
See AnswerQ: Which of the proposed supply-side tax cuts appeals to you
Which of the proposed supply-side tax cuts appeals to you most? Draw up a list of arguments for and against enacting such a cut right now.
See AnswerQ: Each year during the Christmas shopping season, consumers and stores increase
Each year during the Christmas shopping season, consumers and stores increase their holdings of cash. Explain how this development could lead to a multiple contraction of the money supply. (As a matte...
See AnswerQ: Average hourly earnings in the U.S. economy during several
Average hourly earnings in the U.S. economy during several past years were as follows: Use the CPI numbers provided on the inside back cover of this book to calculate the real wage (in 1982â...
See AnswerQ: What are some reasons behind the worldwide trend toward greater central bank
What are some reasons behind the worldwide trend toward greater central bank independence? Are there arguments on the other side?
See AnswerQ: Since 2017, the federal government’s budget deficit has been rising because
Since 2017, the federal government’s budget deficit has been rising because of tax cuts and increased spending. If the Federal Reserve wanted to maintain the same level of aggregate demand in the face...
See AnswerQ: What factors do you think bankers normally use to distinguish “prime
What factors do you think bankers normally use to distinguish “prime” borrowers from “subprime” borrowers?
See AnswerQ: Given the behavior of velocity shown in Figure 1, would it
Given the behavior of velocity shown in Figure 1, would it make more sense for the Federal Reserve to formulate targets for M1 or M2?
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