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Explain the fundamentals behind why changes in the money supply have real effects on the economy and the monetary transmission mechanism.
Explain how monetary policy can be used to effectively stabilize output and smooth business cycles.
Evaluate the role of monetary policy and how it affects the macroeconomy given the implications of the financial accelerator.
Bob makes hand-sewn sweaters, 250 of them per year, sold for $200 each. His annual costs are: fabric for $300, thread for $50, a sewing machine that is leased annually for $40, and needles that are leased annually for $5. T
A lone shepherd can graze 10 sheep per year in a meadow. Each additional shepherd who uses the meadow reduces the number of sheep that can be maintained by one per shepherd. how many shepherds will lead their flocks to the meadow every year? What are..
This is a point I find very confusing and very hard to justify to students. Depending on the books, one finds many different conventions regarding the sign of elasticities and marginal rate of substitution (MRS). Some define them taking absolute valu..
Seth is a competitive body builder. He says he has ti have his 12 oz package of protein to " feed his muscles" every day. On the basis of this information, what can you conclude about his price elasticity of demand for protein powder?
Which country has comparative advantage in the production of Cell Phones? Which country has comparative advantage in the production on Computers? Explain. If transportation costs are ignored and trade is allowed, will China and Germany engage in trad..
A diminishing marginal rate of substitution implies that indifference curves are
“Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan’s onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of..
It is a common belief that social security benefits will run out in the near future. How can we save social security?
The incidence of a payroll tax is borne by both employers and employees. MRP represents what the marginal physical product is worth. If the MRP of labor is below the wage rate, the firm should lay off workers.
Eddies precision shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. Eddie uses a MARR of 15 perce..
Alternative B is for reforming the disability system is to maintain the old benefit levels (for those who receive them) but allow workers to earn up to $300 a month and still keep their benefits. Those who earn over $300 per month would lose all DI b..
What do you think have been the benefits and losses to consumers in the USA? Why? How do you think the international relations between the USA and China have been affected? Why? Update the case result with new information.
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