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Using the quantity theory of money, answer the following questions:
a. If the money supply increases, show the three different (simple, single variable) responses to the increase.
b. What best describes the response to monetary policy in 2013?
c. What best describes the response to monetary policy in 1973?
Discuss perfect competition and long-run equilibrium in detail. Provide detailed descriptions, definitions and concrete examples of your findings.
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..
You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your products is better than the competition, the government purchasing agent views the products as identical
the demand schedule or demand function or curve for a good shows the total quantities q that buyers are willing and
Suppose that an economy initially at full-employment is hit by an adverse supply shock a) What will happen to output and the price level in the short run b) What will happen to output and the price level in the long run
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
1. the demand for coal briquettes is given by the following p200-0.5q. the private marginal cost of coal briquettes is
Illustrate the notion that people are rational respond to incentives consider an experiment conducted by researchers at St. Luke's Roosevelt Hospital in New York City.
The concept of present value gives equivalent in dollars available immediately to a payment that is made at some point in future.
Compute the new macro equilibrium under the assumption that the central bank does not respond to this shock and explain how the central bank could choose to validate this shock. Alter the AD curve to build this "validation" into the model and comput..
Explain why government regulation is needed, citing the major reasons for government Involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.
Suppose you are hired by the Martin guitar company as an economic consultant. You estimate the demand for Martin guitars to be Q = 9,000 – 6P.
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