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It is often suggested that the Federal Reserve try to achieve zero inflation. If we assume that velocity is constant does this zero-inflation goal require that the rate of money growyh equal zero? If yes, explain why . If no, explain what the rate of money growth should equal?
Illustrate what would you expect to see happen to the cost of a checking account if banks could not make loans. What would happen to the amount of investment made by businesses.
Why do the economists use real GDP rather than nominal GDP to gauge economic well-being and discuss critically GDP as a measure of economic welfare and how each of the following events is likely to affect GDP?
Explain how did the Mexican peso crisis differ from the Russian ruble crisis. What was the role of the IMF in these two currency crises.
How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive in..
The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. What price should the manager charge for the calculators?
Identify two government programs, at a national level, that you would definitely change. Explain why and how you would change them. What are the marginal benefits and marginal costs of each changed policy to you
Patients who need the surgery must pay for it themselves. Among which of the surgeries has the lower inflation rate.
An University President wants to reduce expenditures on fringe benefits
Explain how will unskilled workers adapt to a workplace requiring more skilled workers and fewer unskilled workers.
Assume the elasticity of demand for chewing tobacco is .60 and the elasticity of supply is 2.30. Suppose an anit-chewing tobacco campaign decreases the demand for chewing tobacco by 18%. The equilibrium price of chewing tobacco will decrease by ..
A popular magazine reports that wrist watches are becoming the highest fashion craze. What affect will this have on the demand for watches, and what will happen to the price and quantity of watches sold on the market
The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a developing country, producing food and clothing at maximum capacity.
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