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Q1. Suppose the general public purchase $500 million in government bonds and pay for them by drawing cheques on their chartered bank deposits.
(i) Calculate the (target) reserve requirement.
Q2. If the economy currently has a frictional unemployment rate of 2% structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, what is the natural rate of joblessness? Explain where is the economy operating relative to its potential GDP?
How will the unemployment rate during the current period compare with the natural rate of unemployment.
Clarify what happened to the profit maximizing output rate when input costs were increased.
Board of directors has directed you to choose an output level that maximizes the firm's profit. You have an incentive to maximize profits because your job and salary depend on the profit performance of this company.
Assume that you live in a simple economy in which only three goods are produced and traded.
Should Roscoe's Rascals match the price offered by the competitor.
Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.
Arnett is appearing for a new Web portal to utilize to access information which interests him on Internet.
Impacts on currency markets and on economic conditions within the country and globally.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
Explain the process of how that movement occurred using behaviors of consumers and suppliers. Graph the movement between the two points as well.
Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
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