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Identify whether an increase in the M1 or M2 money supply would lead to an increase in the sale of smartphones.
Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate and profit from the interest-rate differential.
The market demand for glue is Q = 240 û 6P, and the government intends to place a $4 per unit tax on producers. Calculate the deadweight loss of this tax when:
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Stopping production of rubber-based products and diversifying..
Based on the model of labor market, how does the monopsonist employer decide how much labor to use? Draw a graph to indicate labor supply, marginal cost and marginal product.
If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
In the summer of 1972, due to extensive crop failure in the (former) Soviet Union, Russia spent over $1 billion to purchase American wheat. Since the American crop had been completely harvested when the Russian deal was made, American farmers were un..
1. What are the two equations that comprise a growth model? Identify the parameters and the variables.
As noted in the text, the overwhelming majority of the world's countries have an economic system that is somewhere between the extremes of "laissez faire capitalism" and a "command economy." However, within this majority of countries, there remains a..
How is the market-compensating wage differential between safe jobs and risky jobs determined? Which type will offer a higher wage?
In 1991 and 1994, Apple Computer engaged in a holding action in desktop market dominated by PCs using Intel chips and running Microsoft's operating systems.
The government uses policies like student loans and free trade to influence the economy’s growth rate. Write a thoughtful and articulate paper that includes the following: Identify at least four policies from the textbook that the government has crea..
Suppose workers can choose to work in two types of jobs: a risky job and a safe job. Because of technical reasons there are only 50 jobs in the economy that are
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