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Consider the following (hypothetical) cash economy with no banks. The money supply consists entirely of $1000 in currency. Output is currently at potential. The government is currently faced with a $100 budget deficit and chooses not to raise taxes, but instead prints $100 more currency with which to balance its budget. The long run result is likely to be
a) an interest rate of 10%
b) an inflation rate of 10%
c) a 10% increase in the velocity of money
d) a 10% growth rate of real GDP
e) a 10% increase in the national debt
What is the unemployment rate of Wiscosland? Using a base year of 2000, the CPI was 150 in 2004 and 165 in 2005. Calculate the inflation rate from 2004 to 2005
Suppose MicDonald's is in a long run situation. Find the firm's demands for each input and use these to find long run total and average costs, LTC(y) and LAC(y). Draw the firm's input choices on an iso-cost / isoquant diagram when wi = 1 and w2 = ..
Derive the socially optimal global level of avoided climate change that should be undertaken. What is Country One's "threat point"
You are considering installing all new compact fluorescent light bulbs in your house. Your initial investment in the light bulbs will cost a total of $400.
Describe the process by which the competitive market establishes a price at which all firms are just earning normal profits.
Anderson Plastics has major fabrication plants in Texas and New York The president, Bob Anderson wants to know the equivalent future worth of a $100,000.
a. state and explain the law of diminishing marginal utility and do the same for the law of diminishing returns.b.
consider the graph below.nbsp it contains 2 separate demand curves d1 and d2 the marginal revenue curve associated with
What is the difference between the optimal level of total consumption and the level of total consumption in equilibrium?
Pick any one of Home's import and explain why trade is beneficial for Home. Be sure to incorporate the three-to-one wage ratio between the two countries in your explanation.
What currency or currencies does your MNC work with? Discuss how exchange rates impact your MNC. How do each of the main economic agents in the macroeconomy impact your MNC?
If the cheese and milk markets are perfectly competitive, what output of milk maximizes profits?
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