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1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain
2. How rapidly has the money supply (M1) grown during the past twelve months? State the rate of growth and the most recent release, use the seasonally adjusted figures. Calculate the rate of growth across the year. Given the state of the economy, should monetary authorities increase or decrease the growth rate of money? Explain why.
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent..
Two indicators of economic development include Gross Domestic Product (GDP) and the Human Development Index (HDI). What is the difference between these two ways of measuring levels of economic development Identify an advantage and disadvantage of ..
Suppose a country's nominal GDP is $600 billion, government expenditures less debt services are $145 billion, and revenue is $160 billion.
If a 20 percent lowring in the price of long distance phone calls leads to a 35% increase in the quantity of calls demanded, we can conclude that the demand for phone calls is:
Interferences such as rent controls and farm value supports reduce efficiency of markets. In terms of the balance of Qd and Qs, explain why do they do this?
The Boca Raton Company announces that if it reduces its price subsequent to a purchase, the early customer will get a rebate so that he or she will pay no more than those buying after the price reduction. a.If the Boca Raton Company has only one ri..
What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?
a) Should the Federal Reserve Board focus exclusively on the problem of inflation b) What other goals are appropriate for Federal Reserve policy c) What is the appropriate goal for the inflation rate d) How effective is Federal Reserve monetary polic..
Lets say that as an worker of the World Bank that I have been proposed to research the requires of a country with a particular economic concern.
Assume that gasoline retailing industry is perfectly competitive, constant expenses, and in long run equilibrium. If the government unexpectedly levies a 5-cent tax on every gallon sold by gasoline retailers,
Periodically you hear of garbage strikes. Is garbage pickup a public good? Does garbage create externalities? What should be done about it? Why does garbage collection seem to attract organized crime?
Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer and creaste and AS/AD diagram
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