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How would you expect a fall in a country's population to alter its aggregate money demand function? Would it matter if the fall in population were due to a fall in the number of households or to a fall in the size of the average household?
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.
Explain how much more money has the Fed printed and where is it now. What affect will an increased M1 money supply have in the long-run.
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) commercial banks,..
Utilizing free markets and the price system always results in a more efficient resource allocation than central planning. Just look at what happened in Eastern Europe.
What are the advantages and disadvantages of a fixed exchange rate system. What are the pros and cons of a floating exchange rate system.
What is the impact on domestic prices for agriculture and on the world price b. Suppose a small food-importing country abroad responds to the lowered subsidies by lowering its tariffs on agriculture by the same amount.
Why will resources specialize according to their comparative advantages. Explain why will this specialization increase production.
Associate a current event article which relates to government regulations or antitrust activities.
Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run
Suppose the economy is on a balanced growth path in the Romer model, and then, in the year 2030, research productivity rises permanently to z ? > z. a) Solve for the new growth rate of knowledge and yt b) Make a graph of yt over time (on a ratio s..
Suppose that the production function is Y = A K1/4L3/4.What is the marginal product of labor (MPL)?
Two indicators of economic development include Gross Domestic Product (GDP) and the Human Development Index (HDI). What is the difference between these two ways of measuring levels of economic development. Identify an advantage and disadvantage of..
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