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The Fed has conducted quantitative easing for about 6 years: QE1 – QE3 and has increased the size of their balance sheet more than 4 fold. Discuss the level of bank reserves, excess reserves and cash in the system and why this has not lead to massive inflation.
Shocks to an economy, such as wars, famines, or the unification of two economies. Often generate large one-time flows of workers across borders. What are the short-run and long-run effects on an economy of a one-time permanent increase in the stock o..
For which of the following goods would a 10 percent price increase lead to the largest income effect for most consumers?
Here's a story economists tell one another: A Nobel Price-winning economist flew to New York City for a conference. He got into a cab, and started talking with the cab driver. The cab driver said, "Oh, you're an economist? Let me tell you, this econo..
What factors may impact on financial performance? What non-financial factors are also important to meeting company goals?
In the short run, real GDP will decrease when the price level falls due to:
As a sample workforce activity, assume your employer has asked you to develop an economic analysis and a set of policy recommendations. To complete this activity, select a news article dated within the previous two months. Clearly summarize the issue..
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
what is the formula for that equation? Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
At the current price level, producers supply $375 billion of final goods and services while consumers purchase $355 billion of final goods and services. The price level is: A) above equilibrium B) At equilibrium C) Below Equilibrium D) More informati..
Suppose that if you get contract, you estimate that you can win another project for two more units. Now what is your break-even price for those two units.
Suppose Dana quits her job as a lawyer, where she made $6500 per month, to open an ice cream shop. Suppose that Dana has revenue of $20,000 per month. Her monthly explicit costs are shown below. Is Dana earning an accounting profit? Is she earning an..
The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward fu..
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