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Outline some prominent features of the history of monetary theory in terms of the ‘Equation of Exchange'. In your answer, briefly outline Friedman's ‘restatement' of the Quantity Theory of Money, and explain the role it plays in his critique of Keynesian demand management policy.
Using the AD-AS graph, show and explain how real GDP growth and inflation would change in both the short run and long run if the growth rate of the money supply increases.
The demand schedule for new hires with le bac and the supply schedule for similarly credentialed new job seekers are given in the accompanying table. Elucidate the currency used in France-is the same as the yearly wage.
What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is:Q = 3000 - 50 P. Is the firm going to achieve its profit goal? Explain.
In a certain building construction project , 6500 feet of ductwork is required. Today's price of a 24-inch diameter duct is 127.50$ per foot. If the cost of the ductwork is expected to increase 7% per year into the foreseeable future. How many laptop..
Would you expect the price elasticity of demand for cars to be more price elastic or more price inelastic than the price elasticity of demand for 2015 model year Subaru Outbacks? Fully explain why. Calculate the price elasticity of demand between two..
Why are you taking this class. Explain. Did you read and understand syllabus requirements for this class. What is labour productivity.
Initial studies of new Keynesian inflation dynamics indicated that the average? price-adjustment intervals in the United States was as long as
Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..
Suppose Mary’s income is $100 per week, which she allocates between sandwiches and books. Sandwiches cost $2 each. Books cost $10 each if she purchases between 1 and 5 books. If she purchases more than 5 books in a week, the price falls to $5 for the..
Squeeze Inc. sells orange juice in a market where there are a large number of consumers and sellers. New firms can enter the market easily and also exit whenever they want to. It sells 40 bottles in a month at a price of $4 per bottle and incurs a..
Under a binding price ceiling, what does the change in consumer surplus represent? When the market price is held above the competitive level, the deadweight loss is composed of: What is the welfare impact of a subsidy policy?
Monopolistically competitive markets are different from perfectly competitive markets because in monopolistically competitive markets firms:
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