What is the key idea in the aggregate expenditure macroeconomic model? What are inventories? What usually happens to inventories at the beginning of a recession? At the beginning of an expansion? Which of the following does the aggregate expenditure model seek to explain: long-run economic growth, the business cycle, inflation, or cyclical unemployment?

In June 2014, the nominal interest rate on a one-year Treasury bill was 0.10 percent. From June 2014 to June 2015, the consumer price index rose from 237.3 to 237.8. If you bought the one-year Treasury bill in May 2014, calculate the real interest rate you earned over the following 12-month period. Given the results of your calculation, why were investors willing to buy Treasury […]

In 2013, a column in the Forbes, “Is Big Pharma Addicted To Fraud?,” informed that the Chinese authorities said they were investigating GlaxoSmithKline and other pharmaceutical companies for bribing doctors, hospitals, and government officials to buy and prescribe their drugs. The article stated that Glaxo was accused of using a Shanghai travel agency to funnel at least $489 million in bribes. Gifts, sponsoring trips to […]

The demand for agricultural products is inelastic, and the income elasticity of demand for agricultural products is low. How do these facts help explain the decline of the family farm in the United States? [Related to Solved Problem 6.5 on page 259] According to a study by the U.S. Centers for Disease Control and Prevention, the price elasticity of demand for cigarettes is 20.25. Americans […]

Why does the law require that both the seller and the buyer sign the offer to purchase and contract? 1. What is an option? 2. How is an offer to purchase and contract different from an option? 3. Explain the significance of a “time is of the essence” contract clause. 4. What are some of the penalties that a seller can seek against a buyer […]

Business Faculty    Taxation Law TAL305   Level 300          Trimester 3 2020  Assessment Brief  ASSESSMENT ONE TAL305_T3 2020      TAXATION LAW Assessment 2   Due: Week 11 Weighting: 30%  Learning Outcomes:  a. Describe and explain the principles and operations of the Australian taxation system and the Tax Assessment Act b. Use and apply the concepts of assessable income and allowable deductions to calculate taxable income and tax payable for […]

[Related to Solved Problem 26.5 on page 977] Suppose that the equilibrium real federal funds rate is 2 percent and the target rate of inflation is 2 percent. Use the following information and the Taylor rule to calculate the federal funds rate target: Current inflation rate = 4 percent Potential GDP = 17.0 trillion Real GDP = 17.17 trillion

Rhinos are poached for illegal trade in their horns, valued for their medicinal properties. According to an article in the BBC, a combination of GPS trackers, heart rate monitors, and hidden cameras, placed inside the horn of a rhino, could alert officials within seconds and offer protection to the few specimens left. The news, welcomed by many environmentalists, also highlights the number of species that […]

You come across a website selling water made from only single isotopes of hydrogen and oxygen. A testimonial on the website claims that drinking only the isotopically pure water helps a person feel more refreshed throughout the day.

Suppose the rate of growth of the economies in the BRIC nations (Brazil, Russia, India, and China) slows down, causing U.S. net exports to fall by $75 billion. If the MPC is 0.8, what will be the change in equilibrium U.S. GDP? Would a larger multiplier lead to longer and more severe recessions or shorter and less severe recessions? Briefly explain.