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Suppose that as the result of the crisis in Greece, the Euro depreciates against the US dollar. Why should you care when the US dollar strengthens relative to other currencies? Describe the ways this could impact your life and that of your friends and family in the US.
In pure competition-marginal revenue
Assume that equilibrium real GDP is 800 billion, potential gdp is 900 billion, the mpc is .80, and the mpi is .40 . What is the size of the GDP gap.
Suppose an investment broker contacts you with the following information. “Opportunity, Inc. is currently selling for $5 a share. I just found out that the company has discovered a cure for cancer. Its price is sure to triple in three months.” How sh..
Suppose we are using the concepts of supply and demand in the labor market for nurses in Moscow. If a large number of Moscow’s nurses decide they will move to Washington to look for work, how would this be reflected in the Moscow labor market?
Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from both chapters seen this unit such as government intervention, inefficiencies, price elasticity, etc. in your answer.
Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Derive algebraically the quantities..
For each of the following, state whether it is considered money in the United States. Explain why or why not. The available credit you have on your Master Card. Federal Reserve notes in your wallet. Reserves held by banks at the Federal Reserve Bank.
Consider the market for vegan soup, where two firms, Kibble and Flesh Not, are in Stackelberg competition. Flesh Not observes Kibble's output level before choosing its desired output level. The market inverse demand curve for vegan soup is P: 18 - Q,..
The Department of Justice concluded that satellite radio is not a market in and of itself while reviewing XM and Sirius merger. What other kinds of competitors did the DOJ include in the market? Discuss. To whatever extent you find the paternalistic ..
Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
As we observed in this chapter, central banks, rather than purposefully setting the level of the money supply, usually set a target level for a short-term interest rate by standing ready to lend or borrow whatever money people wish to hold at that in..
Explain the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes. Do you agree or disagree with this view.
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