In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Decrease government spending.
b. Lower the discount rate for banks.
c. Raise tax rates.
d. Increase reserve requirements.
e. All of the above
.B
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Suppose a tax is imposed on producers of aluminum as a means of internalizing the externality associated with aluminum production. If the tax accurately reflects the external costs of pollutants released into the atmosphere, then the new supply curve for aluminum coincides with which other curve?
The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. Suppose the economy is closed. The equilibrium price of a microwave is ________ and equilibrium quantity is ________.
A. $50; 8,000 B. $125; 4,000 C. $75; 6,000 D. $100; 5,000
Demand is inelastic when elasticity is ______.
a. less than 1 b. less than 2 c. more than 1 d. more than 2
An increase in the marginal propensity to consume (MPC) will, other things constant
What will be an ideal response?