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1. What are the advantages of the Fed increasing interest rates when the GDP gap is positive?
2. What are the disadvantages of the Fed increasing interest rates when is believes the GDP gap is positive?
Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
What are primarily intended to address the problem of insuring people who do not have health insurance? Would a public national health insurance system reduce total spending on health care in our economy?
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Evaluate the range of marginal revenues
Illustrate each of the following events using a demand and supply diagram for bananas.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.
All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months.
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
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