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Below draw an AD/AS graph and a money market graph side-by-side. For the money market, use an upward sloping money supply curve and assume that the equilibrium interest rate in the money market is 5%. Also, assume that actual GDP is at full employment and that the equilibrium price level in the AD/AS graph is 100. Now shift AD to the right based on an increase in animal spirits. Show how the money market graph will adjust to a new equilibrium. Then explain and show what happens if the Fed acts to keep the equilibrium quantity of money constant. Is this rule based policy pro-cyclical or countercyclical? (explain)
The Black Death: In the middle of the fourteenth century, an epidemic known as the Black Death killed about a third of Europe’s population, about 34 million people. Use the production model to explain why wages might have been higher.
What is the socially optimal (first-best) number of firms? Assuming that the market share of each firm when there are N firms is 1/N , what is the free-entry number of firms?
Many factors affect the supply and demand of carbonated sodas.
In many states, including Florida, it is illegal to engage in price gouging. Florida’s law penalizes a seller for any “gross disparity between the quoted price of a ‘necessity item’ such as water, and the item’s price on the date that the governor de..
Explain how political obstacles (lack of skilled officials, instability, corruption, and constaints by special interest groups) and cultural obstacles (cultural attitudes that discourage entrepreneurial activity and and encourage rapid population gro..
The Taxpayer Assistance Center (TAC) provides taxpayer assistance to help in the preparation of individual tax returns. The amount of assistance (A) that can be provided is a function of the number of professional accountants (P) and trained tax prep..
The state government collected all taxes due, but its tax revenues were equal to $40 million each year. What happened to the sales tax base between 2006 and 2007? What could account for this result?
Why monetary policy conducted independently in the United States and is the intended effect always achieved or why not.
The following table is a record of the data of a competitive firm on labour and output: Reproduce the above table on your answer sheet and complete the table. How many units of labour should be employed to maximise profit? Briefly explain your answer..
Who, other than the owners of rental units, loses as a result of rent controls? Who gains form rent controls? What effect would the imposition of rent controls have on the market price of an existing single-family house? What effect would rent contro..
q1. how would you graph an edge worth box for two consumers with the same utility of uxy? also how would you do the
Can an economy be faced with endless trade cycles also still have its Real GDP grow over time?
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