Business, 08.07.2020 02:01 theodisb8440
Suppose the economy is operating at the Zero Lower Bound for the nominal policy rate, the economy is operating at the potential output in period 't,' but there is a large government budget deficit. A newly elected government vows to cut spending and reduce the deficit in period 't+1,' period 't+2,' and subsequent periods. Use an IS-LM-PC diagram and words to answer the following questions.
A) What is the effect of the policy on output in period t+1?
B) What is the effect of the policy on the change in inflation in period t+1?
C) If expected inflation depends on past inflation, when what happens to the real policy rate in period t+2? How will this affect output in period t+3?
D) How does the ZLB on nominal interest rates make fiscal consolidation more difficult?
Answers: 3
Business, 22.06.2019 21:30
Sunset foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. however, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. with the launch of its new line of breakfast foods coming up, how can sunset improve its ability to collaborate without sacrificing the benefits of its current structure
Answers: 1
Business, 22.06.2019 22:00
Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (t) and variable quantities of cement (c) and labor (l). the firm is currently paving 1,000 parking spaces. the firm's cost of cement is $3 comma 600.003,600.00 per acre covered (c) and its cost of labor is $35.0035.00/hour (w). for the quantities of c and l that the firm has chosen, mp subscript upper c baseline equals 60mpc=60 and mp subscript upper l baseline equals 7mpl=7. is this firm minimizing its cost of producing parking spaces?
Answers: 3
Business, 22.06.2019 23:20
Assume a competitive firm faces a market price of $60, a cost curve of c = 0.003q^3 + 25q + 750, and a marginal cost of curve of: mc = 0.009q^2 + 25.the firm's profit maximizing output level (to the nearest tenth) is , and the profit (to the nearest penny) at this output level is $ will cause the market supply to (shift right/shift left). this will continue until the price is equal to the minimum average cost of $
Answers: 2
Business, 22.06.2019 23:40
8. problems and applications q8there are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the following costs: consumers' willingness to payyvette: $35cho: $15sean: $45bob: $25firms' costsfirm a: $40firm b: $20firm c: $10firm d: $30each firm has the capacity to produce only one haircut.for should be given.which businesses should cut hair? check all that apply.firm afirm bfirm cfirm dwhich consumers should have their hair cut? check all that apply.bobchoseanyvettethe maximum possible total surplus is
Answers: 3
Suppose the economy is operating at the Zero Lower Bound for the nominal policy rate, the economy is...
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