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Money demand and money supply is given by (M/P)d = 1000r and (M/P)S=1000 and the price level is 2
a) Graph the supply and demand for real money balances
In what ways and through which mechanisms may a cooling property market and the prospect of further cooling affect an economy's GDP in the short run?
Identify and discuss two aspects of firms' credit policy. Identify one difference in the credit policies of different company and describe why this difference may be important to consumers.
Compare a $30,000 income in 1975 to that in 2015, and analyze the following questions: How is the availability of products expected to change over the years?
A firm can manufacture a product according to the production function Q = 2(K)1/2(L)1/2 where K represents capital equipment and L is labor. The company has already spent $10,000 on the 4 units capital.Calculate the average product of labor, APL and ..
Explain why a decrease in interest rates may have a limited effect on improving Australia's level of economic performance.
In some economies relative supply may be unresponsive to changes in prices. For example, if factors of production were completely immobile between sectors, the production possibility frontier would be right-angled, and output of the two goods woul..
Determine the equilibrium price and quantity of hockey sticks both before and after the tax.
Pick a real-life rm that bundles products in some way. Describe how this pricing function is a form of price discrimination; in other words, why do some consumers effectively "pay more" for a particular product than other consumers do? Why is it a..
With reference to the simple closed economy income-expenditure model,suppose the aggregate consumption function is C = 100 +0.8(Y – T); taxes areT = 10 + 0.25Y; investment, I, is 300 and government expenditures, G, are 200.
Suppose following estimates from the 1990s of shares of income of each group. Draw a rough Lorenz curve for each country. Which has most nearly equal distribution,
Why is firm behavior under Oligopoly so difficult to predict?
Autoworkers agree to a cut in their nominal wage rate. This event ___ short run aggregate supply and ___ long run aggregate supply.
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