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Inflation affect on organization's decision-making process
1. How does inflation affect an organization's decision-making process?
2. If dollar bills (Federal Reserve notes) are backed by nothing but promises and are in real terms worthless, why do people accept them?
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Assume the economy is slumping into recession and needs a fiscal policy boost.
Illustrate what kinds of changes in underlying conditions can cause the supply and demand curves to shift
Show these data graphically. Upon what specific assumptions is this production possibilities curve based? What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a lev..
A perfectly competitive firm should hire an additional worker only if the employee 's marginal revenue product is less than the wage rate.
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
How would each of the following affect the firm's marginal, average, and average variable cost curves?
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
You will be asked to collect five (5) newspaper articles relating to subjects we are covering in the class. As we cover the various chapters you should be actively searching newspapers/magazines to find articles.
Elucidate three manufacturing companies that experienced large percentage increases in the number of firms between 1997 and 2002.
Suppose we have a competitive market for a good with domestic demand and supply given by:
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