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What is the key assumption of the basic Keynsian model? describe why this assumption is needed if one is to accept the view that aggregate spending is a driving force behind short-term economic fluctuations.
Macroeconomics, Economics
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Please Answer The Following Four Discussion Questions 1. Explain four types of unemployment 2. Explain the advantages and disadvantages of: (a) A flexible exchange rate regime (b) A fixed exchange rate regime 3. Suppose ...
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Quesiton: Due to low unemployment, firms are having tougher time to find qualified workers. What will be the slope of aggregate supply curve if a country runs out of qualified workers to hire? The response must be typed, ...
Question: 1. Suppose the marginal propensity to consume is 0.6, the marginal tax rate is 0.25, and the the marginal propensity to import is 0.2. What is the multiplier? 2. Suppose that in the economy described in the pre ...
Question: When other firms react Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned th ...
Question: When using OLS, we assume that the errors are independent (i.e., not serially correlated) and normally distributed with constant variance (i.e., homoscedastic). These assumptions allow us to use the F and t dis ...
Question - Sitting on an airplane, you are chatting with the person sitting next to you. That person asks you some questions about time series and macroeconometrics. What do you say? Here are some questions: 1. What is t ...
Question - Gatekeeper models of MCOs require patients to see a primary care doctor before going to see a specialist. What two key economic principles would be involved in a successful gatekeeper program?
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