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Most economists believe that, in the short run, an increase in the money supply will
1) raise prices by the same proportional amount.
2) increase output.
3) decrease output.
4) decrease velocity
Which of the following arguments strengthen the idea of floating exchange rates? A. Trade deficits can be corrected through changes in exchange rates. B. Changes in exchange rates will not impact the trade balance in the country. C. Governments shoul..
Elucidate when the monopolistically competitive firm lowers price from $16 to $12, how much does total revenue change.
The supply of a new drug is Q= 50 X P – 100. The demand for it is Q = 6,600 – 15 X P. What is the market equilibrium price and quantity?
Suppose a liquidity trap exists and current output is below its natural level.(i.e. an economy is currently operating at the zero nominal interest rate) can this economy return to its natural level automatically? if it can not, explain the mechanism ..
Suppose, Worker 1 has a reservation price of 41 cents; worker 2’s reservation price is 42 cents; worker 3’s reservation price is 43 cents, and so on. There are 150 jobs in firms without air purification systems, and this number is fixed. Thus, the de..
These 3 basic trade-offs include which goods or services are to be created, how to create them, also who gets them.
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the books keeping tasks are done ma..
Elucidate why the equilibria found in part (a) are only short-run equilibria. What will happen in the long run.
q.suppose there are two types of workers high ability and low ability. the training program costs 15000 per year for
Does your home state's (AZ) jurisdiction follow a contributory or comparative negligence theory? How does this affect the outcome of lawsuits?
If US investors decide that investment opportunities in African countries have improved. What happens to US net capital outflow? What hap pens to US net capital outflow? What happens to the US real interest rate?
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be c..
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