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Suppose the real interest rate is 4% and the expected inflation rate is 3%. If the money supply increases by 10% and output, the real interest rate, and the expected inflation rate are unchanged, then the price level increases by
Elucidate how much labor should the firm employ. What is the resulting output and profit.
Most industrial farms hire migrant workers, so the market for such workers is reasonably taken to be perfectly competitive. Suppose that all farms individually have a short-run elasticity of labor demand of –0.5. Explain why the reduction in employme..
Explain how "history" affects ability of firms in this game to achieve an outcome superior to that of one-shot version of game.
Long-Run Labor Demand and Factor Substitutability. Draw the isoquant that corresponds to that level of production where L on horizontal axis and K on the vertical axis. Is this isoquant convex (bowed toward the origin) ? By looking at your graph, de..
List three types of consumer protection laws in banking and give an example of each type. Fair Debt Collection Practices Act (1977). Federal Trade Commission Improvement Act (1980)
In the law of diminishing returns, we see increasing returns at the start of production, production then exhibits diminishing returns until it peaks, and then will exhibit negative returns if we attempt to push beyond that. Provide two examples of ho..
Calculating MPC, In one year, a consumer's income increase by $400 and her consumption increases by $120. Her marginal propensity to consume is equal to.
Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop. Using a supply and demand diagram, show wh..
Patrice owns a travel agency. Her accountant most likely includes which of the following costs on her financial statements?
Explain how high should a monopoly set its prices in order to maximize profits. When you post a response to this question, place it in the context of one of the following examples.
Suppose you are appointed head of the energy department of the city or town where you grow up, and you are asked to come out with a sustainable long-term strategy that that will carry your city into the middle of the century. What are the three bigge..
On the left show the market for potatoes and how the competitive market price for potatoes is determined by supply and demand. 2. Now act as if you are a potato farmer in the Midwest of the United States. Assume that due to an increase in the federal..
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