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Assume the natural real GDP is constant. For every 1% increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 4%.
Given the output ratio is initially 100 and expected inflation is 3.2%, calculate the rate of inflation if real GDP grows by 3.2%.
Illustrate what is mean by "neutrality" or "superneutrality" of money. Give examples and discuss when they are likely.
When the price of a bond equals the face value? If the quantity of bonds demanded exceeds the quantity of bonds supplied, bond prices. Current U.S. monetary policy is best described as.
Given that the production function is given by: Q = 10L - L2+ 60K -1.5K2, where Q is total output, L is labor, and K is capital, what is the firm's optimal combination of capital and labor?
On this graph indicate how a decrease in the price of a substitute good will or will not shift the curves and cause a new equilibrium point. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point yo..
Explain why microscope analysis of a urine specimen is more accurate for Chlamydiascreening in males than in female.
According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime What impact does this behavior have on an individual's lifetime consumption pattern What impact does the behavior have on the ..
What are some of the reasons behind downward stickiness of wages and prices?
Julie consumes food (F) and clothing (C) with a utility function of U(F,C) = FC. PF= 1 and PC=2. Julie has a total of $12 to spend on food and clothing. For all graphs, put food on the x-axis and clothing on the y-axis. a) What is Julie's margi..
In the diagram, add an indifference curve to illustrate the family's optimal bundle after receiving the SNAP card. Assume the family has homothetic preferences. Label this bundle with the letter H for homothetic.
A) Draw a graph illustrating this monpsonistic scenario with employer discrimination. Note employment and wage for black players and for equally talented white players. B) Explain why in this scenario both the employer and black employees are worse..
Illustrate what assumptions is the theory based, and how plausible are these assumptions.
Explain how some government tax revenue and spending can depend on the state of the economy in your on words?
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