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Determine the macroeconomic effects of the following macroeconomic event when the economy is initially at less than full employment. The required reserve ratio is 5% and the Federal Reserve Bank carries out a $20 million open market purchase. Banks hold no excess reserves. Price effects dominate income effects.
Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.
Illustrate what do they mean efficienty level of output. If the government were to build the bridge, what price should it charge.
By what percentage do the total assets decline by bank. By what percentage does the bank's capital decline. Illustrate which change is larger.
Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.
Illustrate wage would a monopoly union demand. Explain how many workers would be employed under the union contract.
We know tastes and preferences play an important role in demand. Do you think of any possible future "popular product".
If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?
What is the difference between the index number for the year you were born and the Consumer Price Index for January of 2012.
Numerous times in the lectures labelling the vertical axis as euro per $ and the initial supply and demand curves labelled with 12/07, Label this initial point as point A.
Discuss the issue of health care in the context of the following microeconomic concepts: ?Marginal analysis ?Trade-offs ?Opportunity costs ?Normative versus positive economics
To what extent does educational planning in the policy decision ought to be guided by economic considerations
What nominal rate per month is equivalent to an effective rate of 3.8% per quarter, compounded continously?
Illustrate what effect do rising interest rates have on the value of the Australian dollar. Use an AD/AS diagram to show the effects on Real GDP and the price level of an appreciating Australian dollar.
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