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Part A
1. Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1) reason.
2. Explain why depositing cash into a checking account does not change the money supply. Provide one (1) supporting fact.
3. Explain why the money supply does not change when one individual writes a check to another. Provide one (1) supporting fact.
Part B
1. Describe one (1) reason why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and one (1) reason why the flexibility of wages and prices tend to favor the classical economic view in the long run.
2. Refer the figure below and explain what happens in each graph (A, B, and C) when an economy is moving from a recession (point a) back to full employment.
How dose commercial building in downtown that includes useable, landscaped, out door space contribute to social equity for the community and also low-income multi-family residential project close to downtown.
Suppose OPEC breaks apart and oil prices fall substantially. Initially, which curve shifts in the aggregate supply/aggregate demand modell In what direction does it shift? What happens to the price level and real ouput (GDP).
Which of the following is the best example of a monopolistic competitor? Firms in a monopolistically competitive industry produce:
Explain how does the chosen forecast effect operational and planning issues in the home building industry. Defend your opinion in your paper.
Refer to the above data. If the product price is $95, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss?
an alternative interpretation of ricardian equivalence?the government and the representative consumer each live for
If the government announced the economy is headed into an expansionary period of rising real GDP and prices, businesses would most likely respond.
Illustrate what is the relationship among the variable selected and the economy. What trends do you see in the data sets.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Assume market demand and supply are given. Equilibrium price of X is $100 per unit then producer surplus is.
How does the amount of unemployment created by an increase in the minimum wage depend on the elasticity of labor demand? Do you think an increase in the minimum wage will have a greater unemployment effect in the fast-food industry or in the lawn-car..
Now suppose that the monopolist fears entry, but thinks that other firms could produce the product at a cost of $15 per unit (constant marginal and average cost) and that many firms could potentially enter. How could the monopolist list attempts t..
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