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Analyze the effects of a reduction in the nominal money stock on the price level, on output, and on the real money stock when the aggregate supply curve is positively sloped and wages adjust slowly over time.
A monopoly firm is free to charge any price it wishes. What constrains its choice of a price?
Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from the chapter in this unit such as government intervention, inefficiencies, price elasticity, etc. What are the impacts that the ph..
A nation's net foreign investment position will worsen or decline if it's balance of payments shows a
Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..
Securitization is the process by which financial institutions a. pool together a group of loans and then issue securities backed by the pool. b. determine the composition of their assets that will yield the optimal amount of security for their financ..
If an employee is transporting company materials and gets into a car accident, should the company be held responsible and liable for any damages? Would your stance differ depending on if the employee were on or off the clock?
Illustrate what is M1 in Iron mania. Illustrate what is M2 in iron mania.
Using the information you have learned so far in this class, state what you think will cause market fluctuations over the next few years as the economy struggles to recover. What areas of the economy should be closely watched as indicators of future ..
a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently, the demand for the product is raised from 20,000 units to 25,000 units. Calculate the price elasti..
Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic.
Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
What do you think that Apple's ability to control the pricing of downloaded song is likely to change in the future.
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