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The Fed announces that it will purchase $1 trillion worth of bonds. Is this more likely to cause the short run Phillips curve to shift to the right or the left? How can you tell?
Given that the demand function of the good Z; Assuming that Pz=10, Ps=40 and Y =950, what is the price elasticity of demand of good Z if Pz increases to $20? Assuming that Pz=10, Ps=40 and Y=950, what is the income elasticity when Y increases to $11..
Suppose you have three producers of oil A, B, and C, with extractions costs of $8, $10, and $12 per barrel of oil. Assume there are no user costs. Assume that each well can produce 100 barrels of oil per day. How much oil will be produced if the mark..
In a price leadership oligopoly model,
Which piece of information would be least useful in trying to predict the effect of a $700M increase in government spending on equilibrium GDP?
As a project manager on a product development team for a new line of iPads for the hearing impaired, you are asked to create a product development plan that addresses items (a) through (f) below. The product has been broken down into the following su..
suppose that an economy consumes all salary income and saves all capital income. Describe if the factors of production earn their marginal product.
If the Federal Reserve announces that it is starting to sell bonds on the Open Market and is considering raising both the discount and federal funds interest rates, what effect would this have on the way a financial intermediary chooses to invest the..
How large is the money supply? How much excess reserves are there? What is the money multiplier? What is the available lending capacity?
Suppose that a firm’s long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. For this range of output, the firm is experiencing
For each of the following shocks, describe how monetary policymakers would respond (if at all) to stabilize economic activity. Assume the economy starts at a long-run equilibrium.
Illustrate what is the marginal cost of a string. Calculate marginal revenue and marginal cost for each quantity.
Would you rather receive $100 today or $120 in one year? b Would you rather receive $205 today or $240 in one year? c Would you rather receive $500 in one year or $610 in two years?
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