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A Federal Reserve Bank has employed the economic consulting company to make a paper on how the use of money has changed over the past twenty years. This paper will be used to help make decisions on how to regulate the nation's banks.
In an e-mail to your manager, explain the role of technology in the evolution of how money is used by consumers. What has happened to the velocity of money because of technology? As an example, calculate the velocity of money when the price level is 10, the national quantity of output is $200 billion, and the money supply is $250 billion.
What market structure best characterizes the market in which universities compete? How does this structure influence the university's pricing strategy?
If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?
Explain what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.
What is the Marginal Rate of Transformation between sugar and tea?
An accountant for a car rental company was recently asked to report the firm's cost of producing various levels of output. What is the average fixed cost of producing 2 units of output? What is the average variable cost of producing 2 units of output..
What is the initial effect of the tax reduction on aggregate demand? What additional effects follow this initial effect? What is the total effect of the tax cut on aggregate demand?
Assume that macroeconomic forecasters predict that the economy will be expanding in near future. How might managers employ this information
Microeconomics is the study of economics at the individual or micro level. One of the most well known microeconomic models is the production possibilities frontier,
On Valentines Day, the prices of flowers and chocolate are usually high compared to other times. How do the principles of demand and supply describe the reasoning behind such price increases?
Discuss how the interplay between economies of density and the properties of hub-and-spoke networks give rise to economies of scope.
Consider two firms X and Y that produce identically tasting cold drinks. In order to raise the demand for its cold drink, firm X raise its advertisement outlay.
Pick a good or service you are familiar with. Speculate how the price for that good or service may have been set and how well this price maximizes profit for the company and determine what shifts the company should make in its pricing strategy.
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