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Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: (a) U.S. Money supply (b) The dollar interest rate (c) The U.S. price level (d) The dollar/euro exchange rate
Assume there is a drought that destroys a large portion of the tobacco crop. Explain what happen in the marketplace for tobacco.
For each of the following cost-output relationship, describe the shape (U-shape, Decrease, increase, constant) of the average total cost and marginal cost function (C=total cost, Q = output).
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Why do some people and some countries advocated for a greater liberalization in international trade, meanwhile, some have favored more protectionism? Please apply both society-centered and state-centered approaches to support your argument.
discuss whether you agree or disagree with Chairman Bernanke's remarks on economic outlook and the role of the Fed' s monetary policy effectiveness by using unconventional policy.
Suppose that Ellen has $I to spend on goods x and y: The price of good x is px and the price of good y is p y: Write down Ellen's budget line and draw it. Indicate the slope, as well as the vertical and the horizontal intercept.
Why does rent control create an inefficient allocation of resources?
NBC executives have developed a new professional sports league—the XBL (Extreme Badmiton League). The short-run production function for televised games has been determined to be Q=25L-2.25L2, where L is the number of players.
Euclid acquires a 7-year class asset on May 9, 2015, for $80,000. Euclid does not elect immediate expensing fewer than 179. She does not claim any available additional first-year depreciation. Calculate Euclid's cost recovery deduction for 2015 and 2..
The long-run market supply curve in a competitive market will
Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Explain why it costs the government (taxpayers) more to subsidize this..
The market demand functions for corn is Qd = 15 – 2P, and the supply function of corn is Qs = 5P – 2.5. Suppose the government gives corn farmers a $0.70 subsidy per bushel of corn. What will be the effects on aggregate surplus, consumer surplus, and..
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