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1. Suppose on Monday, April 23, 2012 you withdraw $1,000 from your savings account and put the money under the mattress.a. Briefly explain how your action affects the level of M1 and M2 measured the same day.b. Briefly explain how this will affect money supply over time.
2. By using aggregate supply and aggregate demand curves to illustrate your points, discuss the impacts of the following events on theprice level and on equilibrium real GDP (Y) in the short run:a. An expansionary monetary policy during a period of high unemployment and excess industrial capacity.b. An increase in the price of oil and a disruption in oil deliveries caused by a war in the Middle east.c. A tax cut holding government purchases constant when the economy is operating at near full capacity and output is at its potentiallevel.
3. In 2009, a fictional economy is in a long run macroeconomic equilibrium. Potential real GDP is $100 million and the GDP deflator is ata level of 100. Between 2009 and 2011, potential output grows by 4%, however unexpectedly high investment and net exports raise theaggregate demand by more than 4% and the economy experiences an inflationary gap. In a diagram, illustrate how these events affectthe Aggregate Demand and Aggregate Supply curves an AD/AS and discuss how, even without any intervention on the part of the government or the central bank, the economy would self adjust over the following few years.
Always Round Tire has a production function of Q = 300 L.75 K.5. In the short run, if L = 250 and K = 25, what happens to the output of tires if L jumps to 300 and then 350. What law does this illustrate?
In the early 1980's just as serious health effects were being noted regarding sugar consumption, Kellogg's changed the name of Sugar Pops to Corn Pops (the sugar content didn't change) and the name of Sugar Flakes to Frosted Flakes (still sugar co..
How much effort do the students exert in the Nash equilibrium of the game introduced by Amalia and what value for the cake induces the students to exert the efficient effort level
An rise in the marginal propensity to will reduce the size of expenditure multiplier and therefore the IS-curve will shift to the
Describe and discuss the model of perfect competition and adopting strategies to gain market power in the competitive industries.
The market environment heavily effects corporate decision making ability. Define and explain the difference in executive decisions concerning pricing, product design,
Assume government forced a minimum wage above what otherwise would be equilibrium wage rate for this segment of the labor market.
What would be the total potential gains from trade if the ski resort and the birders were able to negotiate and what are the total net benefits of the economically efficient number of ski resort acres
Explain a political, economic, or social interaction of decision makers that you have heard about in words. The condition should involve decision makers, available actions
You're a manager at the Chevrolet division of General Motors. If your marketing department estimates that the semiannual demand for the Chevy Tahoe is Q = 100,000 - 1.25P
which of the three funding measures would you support and why- what economic and societal factors affect the demand and pricing of healthcare services in today's market?
Provide an example of an airline or aviation firm trying to take advantage of economies of scale. Do you think they are/were successful? In what way?
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