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Suppose the economy is initially operating at Yn. Now suppose the Fed conducts a monetary contraction where Ms decreases. Using AS and AD, and IS-LM graphs, illustrate the initial equilibrium, and medium run equilibrium. 1. What are the initial effects of the decrease in Ms Y, r, I, and C? 2. What happens to u and Y relative to their natural levels during: the short run, and the medium run? 3. What are the medium effects of the decrease in Ms on P, Y, r, I, and C?
Which of the following is the most valid expression of a theory of underconsumption as a cause of business cycles? a. capital goods production encroaches on consumer goods production b. income equals production, but not all income is used for current..
Proide that the economy grows is allowed to grow through the banking system and the creation of money through lending.
Demand for refrigerators is often explained as cyclical and very sensitive to refrigerator prices & interest rates. Given these characteristics, explain the effect of each of the following in terms of;
What are the three macroeconomic goals? Find an article that shows a connection between a current event and two of the three macroeconomic goals.
Assume we refused to sell goods to any country that reduced or halted its exports to us.
Explain how many hours of work is the consumer working. What is her income.
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
Utilizing productive efficiency as the guide, which country should produce Chevrolets and which should produce Toyotas.
A traditional definition of economics 'efficient utilization of limited productive resources for the purpose of attaining maximum satisfaction of human material wants.'
Will the homeowner retrofit also which insurance policy will the homeowner buy. Explain will the insurance company make a profit (on average) given the homeowners choice.
Suppose that a perfectly equal distribution of income existed in Disneyland. Which of the reccent residents would have the same income he or she has in present distribution?
BMW has MC=$20,000 and FC=$10billion. Demand for markets in Europe and US are Qe=4,000,000-100Pe and Qu=1,000,000-20Pu. Prices and Costs are given in thousands.
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