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"Inflation is always a monetary phenomenon in the long-run."
1. State whether the above statement is "True" or "False".
2. Explain your answer using the Quantity Theory of Money assuming that the velocity of money and the level of output is constant in the long-run.
3. Graph the AD-AS model in the long-run (when the AS curve is vertical) to provide your reasoning and show how the prices are changing in your model.
4. Use the Quantity Theory of Money to explain why the AD curve is downward sloping.
What are the 2 primary mandates of the federal? Does the federal has the authority to purchase private enterprise? yes under what conditions? During 2007 and 2009 did the federal over-step their authority?
Kaufman enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price = $1,..
A monopoly is considering several units of a homogeneous product as a single package. Determine the optimal number of units to put in a package. How much should the firm charge for this package?
Assume the role of vice president of manufacturing of Eastern Products, Philadelphia. You are thinking about the forthcoming annual retreat of top-level manager
The year is 2009 and you have just been elected President of the U.S. The economy is in crisis due to problems in the financial sector and housing markets. Unemployment is 9.5% and rising and the BEA reports GDP has decreased over the last two quarte..
How have we been using "constrained optimization" (provide the function/formula also)
Some companies raise their workers' pay by giving raises, but others prefer to give one-time bonuses instead. Think about two steel mills facing a big two-year drop in steel demand. In one steel mill, workers have received pay raises every year for f..
Discuss any ethical, legal, or social challenges the company may have faced or could face in the future
Discuss which key concepts and topics in this course have made you a stronger candidate to enter the business world.
Although cost leadership is perhaps less relevant for firms pursuing product differentiation, costs are not totally irrelevant. What advice about costs would you give a firm pursuing a product-differentiation strategy? What is the role of costs in a..
Suppose Guatemala has extremely high tariffs and so is in autarky. Draw a partial equilibrium supply-demand diagram for computers in Guatemala. Label consumer surplus and producer surplus.
If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
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