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In normal circumstances when inflation increases unemployment falls and when inflation gets lower unemployment rises but why it is that in shocks unemployment rises when inflation increases.
Shirley thinks that two 8-ounce cans of soda are exactly as good as one 16-ounce can of soda. Suppose that these are the only sizes of soda available to her and that she has $30 to spend on soda. Write down Shirley's demand functions for general pric..
"There are times when the goals of the FED are in congruence with those of commercial banks and there are times when they are in conflict." Do you agree with the statement? Why or why not? Limit your response to one paragraph.
How do changes affect the equilibrium price and quantity of SUVs if a buoyant stock market makes people more confident about the future. What is the shift in the Supply and Demand Curves and provide a brief explanation of why each change occurs.
The multiplier effect of a change in government purchases. Suppose the government in this economy decides to decrease government purchases by $250 billion. The decrease in government purchases will lead to a decrease in income, generating an initial ..
Sketch a demand curve that is unit elastic for a price change between $9 and $11. Assume that the quantity demanded is 110 when price is $9. You’ll have to determine the quantity demanded when price is $11.
In a two-year survey of 100 census tracts in Seattle (WA), Rountree and Warner (1999) observed a mean official violent crime rate of 27.06 per 1,000
Anna consumes good x and good y. Her utility function is given u(x, y) = 100x − x2 + y. Due to the resource constraint, Anna cannot consume more than 100 units of good x. If px = 50, then what is her demand? Calculate Anna’s consumer surplus. What is..
The difference in inflation rates among industrialized nations is often only a few percentage points. Nevertheless, annual exchange rates among currencies of industrialized nations have changed by more than 10% in some years. Evaluate what this sugge..
Consider a market characterized by the following demand and supply curves: Qd = 1600- 20p and Qs = - 900 + 30p. Calculate the change in producer's surplus. Calculate the deadweight loss of the price ceiling.
A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The bonds were sold at par value. If the company paid a selling fee of $50,000 and has an annual expense of $70,256 for mailing and record keeping, what is t..
For many years the Argentinean peso was pegged to the U.S. dollar. Using the IS-LM-FX model for Home (Argentina) and Foreign (US dollar), illustrate how an increase in taxes in Argentina affected the following variables in Argentina (increase, decrea..
Describe the differences between shortages and scarcity. In answering this question you should think difference between the short run and the long run in economic analysis.
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