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Suppose the bank of canada reduces the money supply by 5%.
a. what happens to the aggregate demand curve?b. What happens to the level of output and the price level in the short run and long run?c. according to okun's law, what happens to unemployment in the short run and in the long run? ( hint: okuns law is the relationship between out and unemployment)
d. what happens to the real interest rate in the short run and the long run? ( hint use the model for the real interest rate to see what happens when output changes)
You inherit a package of call options on a stock currently selling for fifty three dollar. In a year, the stock could sell for anywhere between $40 and $80.
Based on your understanding of frictional, cyclical, and structural unemployment, do you think that this high unemployment rate can be explained by frictional unemployment? Why or why not?
Suppose that the market for gnomes is yet to reach equilibrium, and that the current price and quantity in the market for gnomes.
Describe how the Law of Diminishing Marginal Product results in u-shaped average cost curves, both Average Total Cost and Average Variable Costs
Find linear demand and supply curves that are consistent with this information and how would the equilibrium price of ethanol motor fuel in the first half of 2008 compare to the price in 2007?
Draw an iso-cost line for this firm, showing combinations of L and K that cost $6 and another iso-cost line showing combinations that cost $12. What are the slopes of these iso-cost lines?
VMIC Corporation has asked you to look at the following data. The interest rate is 10 percent.
Assume the government sets a uniform standard for winter and summer at A = 500. Support or refute this policy based on the criterion of allocative efficiency, using your model to explain your response.where A is the level of CO abatement
Derive the equation for the demand curve facing the airline during the winter month of January if P = $100, PC = 150, BAI = 200, and S+0 (Price should be expressed as a function of quantity.)
Distinguish between explicit and implicit costs, giving examples of each. Differentiate between accounting profit, normal profit and economic profit.
What is the opportunity cost of the decision to take these benefits from staying in the apartment and dick and Jane know that the annual property tax rate is 1% of the property value
Noting that just one or two firms might be able to produce and sell similar products at lower prices than the many firms that sell quite similar products in the US, some people argue that monopolistic competition is wasteful. Why would many consu..
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