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The Equation of Exchange is given as MV = PY , where M= the nominal money supply, V= the velocity of money, P= the price level and Y=real GDP. What is the Monetarists’ argument (based on the quantity theory of money) about an increase in M? Explain any assumptions that are made to reach their conclusion.
Suppose the employees of Starbucks in China are paid 8 yuan per hour and a cup of coffee is priced at 8 yuan. If Starbucks is maximising its profit, What is the value of marginal product of labour (VMPL) per hour of the last worker employed by Starbu..
q1. cutting the price of a product never increases the amount of revenue you receive. if we want to increase revenue we
ohn also Jeremy are utilitarian's. John believes to labor supply is highly elastic while Jeremy believes to labor supply is quite inelastic.
The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico whose purpose is to eliminate tariffs between the countries and promote all aspects of international trade.
If the Fed wants an easier monetary policy, it might
i. Compute the B E P in units and in shs. ii. Assume that the company intends to make a profit before tax of 20% of sales, determine the number of units that must be sold.
If a Japanese citizen in Japan receives dividends from the shares of stock she or he owns in General Electric, an American firm, the transaction would be recorded on the U.S. balance of payments as a:
Explain a worker’s labor-leisure choice associated with a wage decrease (assuming non labor income does not change). Illustrate the income and substitution effect associated this wage change on an appropriate graph. Label all curves and axis.
How can it be said that the factor-content approach “reveals” a country’s factor abundance? What assumptions seem crucial for making this inference? Explain.
British Airways Plc plans to set aside investment funds now for replacing 34 of the airline's aging long-haul fleet of Boeing 747s and 767s, which will be delivered 6 years from now. How much will the company need to have in its investment funded now..
Give a numerical example to Explain how which a monopolist's marginal income can be upward-sloping over part of its range.
operate his business as long as he rents at least 7 boats per month, operate his business as long as he rents at least 1 boat per month, operate his business as long as he rents all 10 boats each month.
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