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Explain how each of the following may affect the economy:
(a) What effect would changes in the nominal interest rate have on the economy?
(b) What effect would and aggregate demand shock have on the economy?
(c) What about an inflation shock?
Now, answer the same questions (a), (b), (c); but suppose the quantity theory of money holds in the short run as well as in the long run (i.e. inflation adjusts immediately to changes in the money supply).
Under the household production model, the full cost of any activity equals: Occupational segregation is more likely to explain the: Employer discrimination imposes costs on:
Sue and Meg have begun operating a house cleaning service for the purpose of earning enough money to travel to Europe. After six months, they had saved enough for their trip, so they stopped operating their business. What is the nature of their busin..
1. Explain why resources of the island need to support more people than just the native population. 2. Identify and explain TWO examples of scarce resources mentioned above.
Portfolio A consists of a one-year zero-coupon bond with a face value of $2,000 and a 10-year zero-coupon bond with a face value of $6,000. Portfolio B consists of a 5.95-year zero-coupon bond with a face value of $5,000. The current yield on all bon..
Assume the demand curve for golf balls in Japan is Qj = 100 - P, while the US demand curve is Qs = 400 - 4P. Over the range of prices, which demand is more price elastic? Please fully justify your answer using the definition of the elasticity of dema..
Healthcare system as a "third-party payer" system: When you receive healthcare in the U.S. generally you are not paying for it; you are paying for insurance, and your insurance pays for the healthcare. Hence, the payment is being made by a third part..
What is the principal remaining after 20 monthly payments have been made on a $20,000 five-year loan? The annual interest rate is 12% nominal compounded monthly.
What is imperfect optimization and why might it be costlier, in relative terms, for the poor than for the rich? Please suggest a public policy solution that may address this issue, drawing on your readings in behavioral economics.
Using any relevant information below, calculate GDP via the expenditure approach. Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say that the production of goods and services in Nowhereland has increa..
Fully evaluate these regression results, including computation of t-statistics, adjusted R2, and the F-statistic.
q.the total demand as well as for money is equal to the transactions demand as well as plus the asset demand as well as
To examine some of the causes of differences in income, and to describe and analyze some of the government policies that attempt to reduce poverty. To show how the Social Security program is designed, how it developed from an insurance program to a t..
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