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Q1. Analyze the following statement, and illustrate how would happen in the long run if such advice were followed by the Fed: "The increase in the stock market has increased person's wealth. As a result, their consumption has increased demand and output. So the Fed needs to increase supply of money because with higher income people's demand for real money balances will be higher." Draw and label the graphs.
Q2. Explicate how firms decide on where to produce depending on the marginal product and average product.
Would Boeing's margin likely rise or fall if the yen then depreciated as well as competitor prices were unchanged.
Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of $1000 the first year, how much taxable income must he report on his tax return.
If supply at every price is reduced by five gallons, what will the new equilibrium price be.
A manufacture procedure using 2 inputs, labor as well as capital.
Smith has been trying to sell his house for 6 months although so far there are no purchasers. Draw the market for Smith's house.
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
Do you think the industry environment is significantly different today explain.
Compare the consumption levels of workers in both countries. Explains the diversity between the countries.
Should Roscoe's Rascals match the price offered by the competitor.
Assuming labour demand is downward sloping and that the labour market is competitive, what happens to national income as a result in immigration.
Why might these firms agree to form a cartel. If such a cartel is formed, use the prisoner's dilemma to explain why it may or may not survive.
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