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Research a real life example of quantity control imposed by the government (find out a market with quantity control). Discuss through which mean (such as license, tax, or other means) the government imposes a quantity control, and what are the inefficient effects due to this quantity control.
Suppose there is a temporary but significant increase in oil prices in an economy with an upward-sloping Short-Run Aggregate Supply (SRAS) curve. If policymakers wish to prevent the equilibrium price level from changing in response to the oil price i..
Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels.
Assume the U.S. is a small open economy and has balanced trade. Suppose Congress is worried about the U.S. economy entering another recession and as a result increases infrastructure spending. Using the LF model, illustrate and describe the effect of..
How can reserve requirements, discounting operations and open market operations be used to increase money supply an add if the ecomoony is in recession?
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Consider the two good utility function: U(x,y) = y\sqrt{}x . Does this consumer believe that more-is-better for good X? Does this consumer believe that more-is-better for good Y? Does this consumer’s preferences exhibit diminishing marginal utility o..
If interest rates remain unchanged, what is the expected capital gains yield, stated as a percentage, over the next year for Bond A and for Bond B.
What are the factors which led M&S to internationalize
A car may be purchased with a $3500 down payment now and 72 monthly payments of $480. If the interest rate is 12% compounded monthly, what is the price of the car? using linear interpolation, determine the value of (P/A, 6 1/4%,10) from the compound ..
Suppose that the government and the Federal Reserve have conflicting goals. The government wants to encourage economic growth by. But the Federal Reserve wants to decrease inflation by.
If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the Average Fixed Costs per paper?
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