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An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there. How could the central bank achieve this goal in the short run? What would happen in the long run? Illustrate with a diagram.
A small fitness center that offers only personal training services has the following demand and cost parameters: Demand: The fitness center has found that it has some discretion in pricing¬¬—that is, it can raise price marginally without drastic redu..
What economic considerations must individuals take into account in making the decision to open a business?Coporate Finance
Compare and contrast the industry structure, conduct and performance of firms in the following industries:
Identify one environmental factor or risk that affects the decision-making opportunities within your organization. Provide a brief description of the concerns and potential solutions for addressing the concerns or risks. Are there financial requireme..
Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a stock of unintermediated capital worth 10 million goods. Fiat money is..
Why is the issue of insolvency an important factor in the regulation of business relationships?
If a product becomes more popular among buyers, then its supply will decrease and its price will rise as shoppers buy more of it from the sellers. If the government grants a subsidy to homebuilders, then the supply of lumber will increase because lum..
Illustrate and explain how a government budget deficit can lead to a higher real interest rate. Discuss how the effect of a budget deficit on the real interest rate could be altered by an increase in private savings.
The key condition for equilibrium to occur in a market is: A. price should equal quantity. B. demand for one good should equal demand for all other goods. C. demand curves should equal supply curves. D. quantity demanded should equal quantity supplie..
Which could consider be automatic stabilizer fiscal policy? The difference between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) is the fact that the former compared to the latter went beyond tariff reductio..
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. Does price equal or excee..
A union is trying to form in a company that you are working at. When the union representatives come to you to pitch the union, they extol the uniqueness of their system, where you receive the benefits of collective bargaining, but if there comes a ti..
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