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To counteract the recent crisis, the Federal Reserve has increased the monetary base by trillions of dollars. However, the total money supply in the economy has not increased significantly. Explain this paradox using the model of money supply.
A local landfill currently charges $100 per half ton load of waste to dump. The marginal costs to the landfill of operating the dump are about $60 per half ton load of waste. Assuming the landfill pricing is dynamically efficient, what is the MUC of ..
Calculate nominal GDP in 2006 and in 2007 and the percentage increase in nominal GDP between 2006 and 2007.
A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has
Which former Soviet republic currently a member of the Commonwealth of Independent States (CIS) has been the most economically successful in making this transition.
Then the Fed increases the money supply. Assuming that any resulting inflation is unexpected, explain any changes in GDP, unemployment, and inflation that are caused by the monetary expansion. Explain your conclusions using three diagrams: one for th..
An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goo..
What is the marginal revenue product of labor (MRP)? What shape does the MRP curve have? Why? What is marginal factor cost? How is it related to the supply curve of an input?
Assume an economy with a total population equal to 1. Individuals can only be employed or unemployed. Suppose this economy’s steady-state unemployment rate is 5%. We know that workers can lose their jobs and become unemployed with probability 4%. Wha..
When a company is profitable, there is always the threat of new competitors. The market structure may deter new entrants. For example, if there is a significant investment required to enter the market, competition may be minimal. However, if the inve..
A local community voting to raise property taxes to increase school expenditures
Think of any financial innovation in the past ten years
Trademark law does not allow the holder to sell a trademark independent of the good to which it is attached. Thus, Coca-Cola cannot sell its use of the trademark "Coke" to another producer of cola syrup that mark may be sold only with the syrup produ..
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