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Question 1: What is the difference between NGDP and RGDP?
Question 2: What is the difference between the CPI and GDP price index?
Question 3: What are the four phases of the business cycle? Make sure you are able to explain what happens in each phase.
Question 4: Define and give examples of the types of unemployment?
Question 5: What is the economic cost of unemployment and how is it measured? What is Okun's Law?
Calculate the price elasticity of demand for gasoline implied by what most studies have found.
The classical approach says that monetary changes directly affect the price level,the Keynesian approach states that changes in money affect the economy only indirectlythrough changes in interest rates and investment.
In a hypothetical economy, the monetary aggregate M1 equals 120,000 pesos, and M2 equals 320,000 pesos. The following information about this economy is also available: Money market deposit accounts 80,000 Amount of currency held outside of banks.
Using the answers to parts a and b, state the decision problems of the two governments when they act as independent ‘‘leviathans'' and attempt to maximize revenue. What is the equilibrium level of taxes?
Show how the equilibrium, consumer surplus, and producer surplus change. What is the deadweight loss, if any, from this price control?
Draw in the resulting equilibria or tangencies and join up all of these points. You have just constructed a price-consumption curve for good X. Can you understand why the curve is so called?
"South Asia has a lower income per capita than sub-Saharan Africa." Comment on the validity of this statement? What is the meaning of a "colonial legacy"? Discuss any disadvantages and possible advantages.
(Creating Money) Often it is claimed that banks create money by making loans. How can commercial banks create money? Is the government the only institution that can legally create money?
Why do you (we hope!) choose different policies for each? What about new inventions, such as computers, antibiotics, or toothpastes? Is some sort of regulation needed here too? If not, why not?
two clothing stores in lowland mall are approached by a supplier with two lines to offer say formal or casual. the
explain why concentration on the actual budget deficit might have given a misleading impression of fiscal policy at some stages between 1929 and 1933.
Cheap broadband's a winner Inexpensive broadband access has created a new generation of television producers and the Internet is their native medium.
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