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What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year for a three year period? (Assume that the monetarist felt that the long run average growth rate of RGDP was 3%)
It may be borne in mind which demand plays a pivotal role so far the determination of equilibrium composition of output is concerned.
the wages of players have raised enormously, in particular the salaries of high-quality pitchers.
In a multibank system, an individual bank makes loans only up to the level of its excess reserves, while the whole commercial banking system can lend out money that is a multiple of the original bank's excess reserves. Why is there this difference..
Suppose we have a competitive market for a good with domestic demand and supply given by:
The key feature of the production function is that the marginal impact of capital per worker k = K/L on Y/L decreases as K/L increases.
Determine the economy current stage in the business cycle and support your answer with an article written within the last week from popular press or blog.
Countdown to a new agreement might galvanize development assistance debates. What do you think will happen and should happen- and why.
Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different.
The Yankees have determined that there are 3-groups of purchaser for their tickets. They have determined that the price elasticity of demand for group one is -1.02,
Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose you're trying to sell a company a new accounting system that will reduce co..
Use indifference curves and isoprofits for wages and job risk to present one possible reason for this difference in annual salaries. You must explain the shapes of your indifference curves and isoprofit curves to receive full credit.
Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed. Specifically, what sorts of changes in the assumptions would weaken the effects of monetary policy?
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