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1. Suppose the level of real aggregate demand for output in a macro economy is a negative function of the expected real interest rate- the nominal interest rate minus the expected inflation rate. Suppose also that the monetary authorities are setting the nominal interest rate and accommodating the private sector's demand for outside money, at that fixed nominal interest rate. Assuming adaptive inflation expenditure, exacerbating the shock? How could an interest-rate-setting monetary authority overcome this problem?2. 'Conducting monetary policy by way of nominal interest rate setting can destabilize the economic system.' Outline and critically appraise this proposition (e.g. by use of a simple macroeconomic model). How might his difficulty be escaped, via the manner in which the monetary authorities react to the behavior of the economy, in their setting of the interest rate?
A prime minister of an emerging country once bragged that he was going to make his country self-sufficient and independent of foreigners. Do the principles of economics suggest anything about how you as a native of that country might have been aff..
Pretend you are a neoclassical (free-market or environmental economist), new institutional (transaction cost or ecological), and instutional economist-from the perspective of the cost benefits of "going green" for major utilities (electricity, was..
a muffler company advertises that you will receive a rebate if it takes longer than 28 minutes to replace your muffler.
Describe how each of the following will affect the price and quantity of equilibrium. To find out the new values, describe how the supply and/or demand curves will shift in the following cases (if at all).
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For most products, purchases tend to fall with decreases in buyers' incomes. Such products are known as ( ) “We have to decrease our dependence and consumption of fossil oil” is a----------- statement whereas “our decreased dependence and consumption..
An unmarried taxpayer with no dependents expects an adjusted gross income of 70,000 in a given year. His non business deductions are expected to be 6000. What will his federal income tax be?
Game Theory: Two friends who are students of an Econ class got hold of the answer key to the graded homework problems. Suppose that over the quarter, the Professor poses two graded homework assignments. Since these homework assignments are very diffi..
Consider a production setting with two factors of production,one fixed in the short run.Show how isocost/isoquant analysis can be used to derive a short run average total cost curves.Label your diagramms carefully.
identify at least five (5) fixed costs and five (5) variable costs OF the NFL (National Football League). If the business or economy slows down, discuss how the industry can control its costs based on the ten (10) costs you identified.
Determine if the benefits of free trade outweigh the drawbacks, and what could be done to address the drawbacks (if anything). State whether you believe fair trade is a fad or a trend. Provide support for your reasons.
The Microeconomic Paper tests your ability to apply economic principles to a business decision.
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