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1) If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?
2) If velocity is constant and real GDP grows by 2.5% per year, how much would the Money Supply grow to have zero inflation?
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
The following quotations are from an article in the Financial Times on November 9, 2007:
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labour (MPPL) schedule.
Discuss the impact on wages, employment in the industry, and the economic welfare of the following input market structures. In which case will the deadweight loss be the smallest?
The economy of a country called Econoland is described by the following desired aggregate expenditure components (all figures in billions of $). For the purposes of this question, the first set of equations will be referred to as fiscal policy1.
Using the following data calculate Disposable Income:
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
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