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Suppose that the average prices of refrigerators have fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping?
Explain how has the relative composition of M1 changed since 1965? Do your best to explain why this change has occurred.
What does this equation imply, or not imply? What are its political implications? How must one be careful when applying it to real world situations?
Elucidate how cost-push inflation might prompt policymakers to take actions that subsequently cause demand-pull inflation.
Illustrate what are the long-run effects on prices, output, and profits in monopolistic and monopolistically competitive industries.
Assume an economy is going through a Recession what type of Monetary Policy requires to be implemented through the Federal Reserve?
Use the price-cost formula to determine whether or not the firm's operations are productively-efficient. (e) Use the price-cost formula to determine whether or not the firm's operations are allocatively efficient.
Make an analysis by answering questions below. Suppose that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place:
Illustrate what is the nature of this trouble. How did this trouble come about? In what ways will this trouble impact the US economy.
Assume W = 10 000. Draw the aggregate expenditure function on a scale diagram along with 45°line. What is the equilibrium level of national income?
In the aggregate expenditure model, suppose that consumption function is given by C=800+0.58(Y-TP), that planned investment (I) equals 250, and that government buy
Explain in a couple of well written sentences which industry in the U.S. would benefit in the short run from putting a tariff on all Japanese autos,
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
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