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Assume that velocity and aggregate output are constant. If the money supply increases from $1.10 trillion to $1.18 trillion:
A. aggregate output will increase by 5.45?%.
B. aggregate output will increase by 7.27?%.
C. the price level will increase by 5.45?%.
D. the price level will increase by 7.27%
We normally think of currency and banking risks as being something confined to third-world or developing countries. But events in the past few years such as the Euro crisis or the financial crisis in the United States have shown that not even the wea..
Please give an example of research question that employ probity or legit model as an analysis method! Mention the dependent variable (Y) and the independent variables (X). What is your expectation on the sign of each X's coefficient?
Assume that gross national debt initially is equal to $3trillion and the federal government then runs a deficit of$300 billion. What is the new level of gross national debt? If 100 percent of the deficit is financed by the sale of securities to feder..
Consider and economy with the following production technology: Y = 9K1/3 L2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. a) Compute the equilibrium wage and capital return. b) Compute total p..
Consider two policies: a tax cut that will last for only one year and a tax cut that is expected to be permanent. The______ policy will stimulate greater spending by consumers. The______ policy will have the greater impact on aggregate demand.
Calculate the original market equilibrium price and quantity in absence of the price support policy.
An increase in buyers' incomes
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Some firms with monopoly power are more focused on market share, size and influence in the economy. This is particularly true if there is a tendency for ownership (stockholders) and control (managers) to be separated. These firms sometimes are willin..
Suppose that during the past year tv fell from $2000 to $1800 per tv sales increased from 700000 to 800000 tv. calculate elasticity of demand.
Which of the following would NOT increase the supply of money in a fiat money economy?
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