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Suppose that consumption depends on the level of real money balances (on the grounds that real money balances are part of wealth). Show that if real money balances depend on the nominal interest rate, then an increase in the rate of money growth affects consumption, investment, and the real interest rate. Does the nominal interest rate adjust more than one-for-one or less than one for one to expected inflation?
What is the average fixed cost of producing 2 units of output based on the following table:
What level of output should this firm produce in order to maximize profit or minimize losses - and how many firms in total will there be in this market?
What policy did the Fed and other central banks around the world use to try to stabilize the economy during the financial crisis ?
1. consider a demand curve of the form qd20-2p. also consider a supply curve of the form qs2p-4. graph both curves
Consider two tax policies: a tax cut which will last for only 1 year and a tax cut that is expected to be permanent. Which policy will have the greater impact on aggregate demand Which is more likely to shift long-run aggregate supply
question linear programmingcomplete the linear programming matrix at the end of the question with the appropriate
Discuss a firm's objective relative to its economic cost. Describe each of the firm's economic cost, and whether these would be considered explicit or implicit. What is the difference between an economic profit and an accounting profit.
How might prohibitions on advertising affect the cigarette industry in the short run, and in the long run using a Prisoner's Dilemma sort of argument.
Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the bank of Canada keeps the money supply constant
What is the total product function for Dimex? The average product function? The marginal product function?
A staff member proposes raising the payroll tax paid by firms and using part of the extra revenues to reduce the payroll tax paid by workers.
in light of the economic struggles that many states are facing today every area of the criminal justice system is
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