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Short answer question:
If the Federal Reserve changes the reserve ratio in the economy from 10% to 5%, explain the effect this will have on the broader economy (e.g. GDP) in the short run and the mechanism for it happening. Use both the Quantity Theory of Money and the Money Multiplier in your answer.
Elucidate Congress is considering reinstating a 10% investment tax credit in order to stimulate the economy.
Explain is any outcome generated by a Nash equilibrium not generated by any subgame perfect equilibrium.
A typical policy will pay the replacement cost of $2500 if the boat is a total loss.
The following is intended to explore what kinds of cross-price demand relationships are logically possible in a two-good model with exogenous income.
Show mathematically that for any upward sloping SRMC, SRATC is strictly convex, crosses the SRMC curve at the lowest point on the SRATC curve, and the SRMC curve is rising at that point.
A labor contract provides for a first-year wage of $15.00 per hour and specified that the real wage will rise by 5 percent in the second year of the contract and by 7.5 percent in the third year. The CPI is 1.00 in the first year, 1.02 in the second ..
Discuss the principles of the “law of one price” and the conditions which must hold for the law of one price to hold. Discuss the economic reasons why the increase in North American production could have caused this price divergence to occur. Discuss..
Hot chocolate is made from chocolate syrup and milk. Using a separate supply and demand graph for each question, please show the effects of the following events on the market for hot chocolate (please specify the change in demand, supply and the equi..
Do some research on the Great Depression and the New Deal. Also look up Keynesian economics. Based on your research, could the lessons learned from the New Deal and Keynesian economics be applied to today's slow economy? What was the New Deal? What i..
What are the three variables that can cause a shift in the aggregate demand curve?
The Marginal Product of Labor and the Marginal Product of Capital are given.
Suppose the President gets Congress to pass legislation that encourages investment in research and the development of new technologies. Assuming this policy leads to a positive productivity change for the U.S. economy, use aggregate demand and supply..
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