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The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Megan spends all of her money on comic books and beignets. In 2010 she earned $18.00 per hour, the price of a comic book was $9.00, and the price of a beignet was $1.00. Which of the following give the nominal value of a variable? Check all that apply. Megan's wage is $18.00 per hour in 2010. The price of a beignet is 0.11 comic books in 2010. Megan's wage is 2 comic books per hour in 2010. Which of the following give the real value of a variable? Check all that apply. Megan's wage is 18 beignets per hour in 2010. The price of a comic book is $9.00 in 2010. Megan's wage is $18.00 per hour in 2010. Suppose that the Fed sharply increases the money supply between 2010 and 2015. In 2015, Megan's wage has risen to $36.00 per hour. The price of a comic book is $18.00 and the price of a beignet is $2.00. In 2015, the relative price of a comic book is . Between 2010 and 2015, the nominal value of Megan's wage and the real value of her wage . Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.
Sam owns outright (no mortgage payments) two plots of land of equal size in Southern California. One plot is in Victorville (the High Desert) and the other is in the coastal community of Newport Beach. Given that Sam’s calculations were correct on t..
Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.
We use percent-changes in the formula for estimating the price elasticity of demand coefficient in order to:
What is the difference between quantity supplied of bonds and a supply of bonds? First, use your own words to describe this difference and then illustrate the difference using two separate, properly labeled graphs (keep in mind that each of them will..
The demand for Dunkin Donuts glazed doughnuts will change by Illustrate what percentage also in Illustrate what direction.
Show that the balance sheet balances if these are the only assets and liabilities.
An existing company is considering expanding into a new product line that will use the same factory as its existing products.
Determine if you should go into your own solo private practice or to join a specialty group of physicians.
How many bushels of corn are purchased by consumers and at Illustrate what cost. By government. How much does program cost government. How much income do corn farmers receive.
A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero..
What will be the impact of a fiscal expansion in a large economy like the U.S. on aggregate income, the exchange rate, investment, trade balance and interest rate? Assume that the large economy in question has aborting exchange rate.
Are monopolies and oligopolies (firms demonstrating power) always bad for society? Be sure to provide real world examples of where this may be the case to strengthen your position in the google antirust case.
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