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What direction of change in velocity could explain the price level increasing by a smaller percentage than the money supply? What would this change in velocity imply about the frequency with which money changes hands?
If $500 cash is deposited into a commercial bank demand deposit and another customer borrows $750 what happens to the money supply? What is the money multiplier in this example
Explain why do economists attempting to forecast short run future changes in real GDP and employment look closely at information on business inventories and unfilled orders?
You might want to compare your country with other countries (maybe with the World average). This will help you to understand whether the inflation or unemployment is too high, or growth is too low in your assigned country.
What will happen to the price of planes, to sales, and to profits when Airbus comes out with a new plane?
Economic indicators are economic statistics that tell us how well the economy is doing. The GDP, unemployment value, and inflation vale are the most common macroeconomic indicators.
Draw an Aggregate Demand and Aggregate Supply graph with an equilibrium GDP - starting point. You can ignore the Long Run curve.
Decreases aggregate quanity demanded among a stationary aggreate curve. E rases the equilbrium level of output and employment.
Provide a business or political example of the prisoner's dilemma from the field of game theory. What is the payoff for each participant in your example.
A firm in a perfectly competitive market has the following total cost function: STC = 20 + 6Q - 1.12Q 2 + 0.09Q3, where Q is the firm's output (in 000s). Market price is $7.
Give an intuitive explanation for how the multiplier works on a reduction in autonomous aggregate expenditures. Why does equilibrium real GDP fall by more than the change in autonomous aggregate expenditures?
However, some argue that free trade leads to environmental degradation. Explain why free trade could actually help the environment.
Through monetary and fiscal policy, can a government used various ways to address poverty and growth?
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