Suppose Congress is considering an investment tax credit to subsidize domestic investment.
How does this policy affect national saving, domestic investment, the interest rate, net capital
outflow, the balance of trade, and the exchange rate? Use words to
What effect will each of the following events have on Long Run Aggregate Supply?
The United States experiences a wave of immigration.
A severe hurricane damages factories on the east coast.
Stock prices rise.
Intel invents a new and more powerful computer
Suppose that a state has 2,850,000 adults employed, 1,500,000 adults outside the labor force,
and 150,000 people unemployed. What is the unemployment rate, labor force participation rate,
size of the labor force, and the total adult population of that sta
The Federal Reserve expands the money supply by 5%. To answer this question you should
DRAW THE AGGREGATE SUPPLY AND AGGREGATE DEMAND DIAGRAM FOR THIS SCENARIO, EVEN
THOUGH YOU DO NOT TURN IT IN.
Use the theory of liquidity preference to explain the impac
Suppose this year's money supply is %400 billion, nominal GDP is $10 trillion, and real GDP is $5
What is the price level?
What is the velocity of money?
Suppose the velocity of money is constant and the economy's output of goods and
What happened to make the firm Bear Stearns go out of business?
People started taking their money out because they didn't have confidence in the bank anymore
due to the rumors. Liquidity crises also played a role as one of the rumors because people weren'
The nations of Appleland and Orangeland produce apples and oranges. In Appleland, there are 100,000
hours of labor available in a month, and it takes 2 hours of labor to produce a barrel of apples, and 4 hours of
labor to produce a crate of oranges. In Or
Which components of GDP would be affected by each of the following transactions?
You buy a pizza. (1)
Aunt Jane buys a new house.(2)
A family buys a new refrigerator.(3)
California repaves Highway 101.(4)
Ford sells a Mustang from its inventory.(5)
Beleaguered State Bank (BSB) holds $250 million in deposits and maintains a reserve
ratio of 10%. Using - and | keys to form your table, type up the T account for BSB.
Now suppose that BSB's largest depositor withdraws $10 million from her account one
Many workers hold large amounts of stock issued by the firms at which they work. Why might
companies want to encourage this behavior? Why might a person not want to hold a large
amount of stock in the company where she or he works?
Companies want to encou
In what ways is your standard of living different than that of your grandparents when they were your age?
Give specific examples. What might cause these differences?
The standard of living as of now is high. Everything coasts an arm and a leg. Gas prices