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A change in real money supply can result either from a change in nominal money supply through Federal Reserve policy [holding the price level constant] or from a change in the price level (holding the nominal money supply constant). The change in the nominal money supply causes a shift in the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve. Explain.
Assume the Fed decides to buy $1 billion in Treasury bonds from the public. Suppose that the reserve requirement is 10%. What takes place to the interest rate and money supply?
Rcognize the three phases of production and describe why the firm short run production has only one rational stage of production.
Explain how microsofts bundling of free internet browser software with its windows operating system could violate US antitrust laws, and be sure to mention which laws in particular might be violated.
Assume that the demand changes to QD = 600-2P and the supply function stays the same. Graph the new situation in Excel. Find the new equilibrium price and quantity, and show it on your graph.
Describe some of the microeconomic and macroeconomic factors a firm must consider in its own sales and profit forecasting.
The average 15-year old purchases 12 CDs and 15 cheese pizzas in the typical year. If cheese pizzas are inferior goods, would the average 15-year old be indifferent between receiving the $30 gift certificate at local music store and $30 in cash?
Choose any one topic out of the following , • Water , • Energy , • Agriculture , • Forest
The following is the production possibilities for a firm. At 0 labor units (strangely enough), there are 0 units produced. At 1 labor unit, there are 10,000 units produced, at 2 labor units, there are 25,000 units produced, at 3 there are 45,000, ..
What is the Marginal Cost? What is the Average Cost? What is the optimal production level where production costs are the lowest per unit?
In the summer of 1997, Congress and president agreed on budget package to balance the federal budget. The contract," signed into law by President Clinton in August as the Taxpayer Relief Act of 1997,
Many retail companies use mark up pricing? Setting price some percentage above variable cost (such as 50% above cost).
Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.
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