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An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there. How could the central bank achieve this goal in the short run? What would happen in the long run? Illustrate with a diagram.
A reduction in monopolist’s fixed costs would:
If the U.S. and Japan trade different versions of cars and the U.S. enact trade barriers against Japanese car imports, what will happen to the level of Japan's horizontal foreign direct investment in the U.S.? Why?
Dewey Cheatham is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). Dewey has been doing some research into how he can increase the Company’s revenues and thereby really impress..
Discuss an industry that would meet the conditions of a perfectly competitive industry and how the individual firms would respond to an increase in the market demand for the product.
Assuming a two sector economy where there is only consumption and investment expenditures, why must savings and actual investment be equal in value even if actual investment is not equal to planned investment?
Chris works at student services proctoring exams. This is Chris’ only source of income. Chris is paid $10 per hour. Chris is allowed to choose how many hours per week she works, as long as it is between 0 and 15. Graph, on a well labeled graph, Chris..
What does "the amount of a nation's output" mean exactly? Does it increase even if government expenditure goes up as a reaction to a disaster?
If the required reserve ratio is 0.05 and the Federal Reserve buys $1 billion in treasury securities, the money supply would Increase/decrease(circle one) by $_____________. This would lead to an increase/decrease (circle one) in interest rates.
q. patricia is researching venues for a restaurant business. she is estimating 3 chief features that she considers
For the period 1980-2010, how did the rate of growth of per capita GDP in China compare to that in the US? How did the rate of growth of technological improvement (broadly conceived) in the two countries compare? Over the next half century, do you e..
Suppose the restaurant industry is perfectly competitive. All producers have identical cost curves and the industry is currently in long-run equilibrium, with each producer producing at its minimum long-run average total cost of $8.
Pick the last 2 business cycles as identified by the National Bureau of Economic Research. Explain the behavior of the following variables during each of these cycles- unemployment, inflation, GDP Growth.
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