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Imagine that the central bank of an economy with unemployment doubles its money supply. In the long run, full employment is restored and output returns to its full- employment level. On the (admittedly unlikely) assumption that the interest rate before the money supply increase equals the long-run interest rate, is the long-run increase in the price level more than proportional or less than proportional to the money supply change? What if (as is more likely) the interest rate is initially below its long-run level?
Explain the factors and mechanisms of growth - Explain how governments use monetary and fiscal policy to manage the economy.
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy?
Compare and contrast the two industries you have identified in terms of size, products, services, customers, economic and regulatory environment.
What question would you ask the developers of the Pee Power technology in order to determine if it was likely to create economies of scale?
1. we know that reginald has the two indifference curves depicted in figure 1. given these curves please answer the
If so, how would the differences affect the interest differential between, say, dollar and Mexican peso deposits? Do you have any guesses about how the liquidity of euro deposits may be changing over time?
What is the payoffof option and illustrate the payoff on a graph with stock price on the x-axis and the payoff on they-axis.
Supply and Demand Concepts
An investor bought a one-acre lot on the outskirts of a city for $9000 cash. Each year she paid $80 of property taxes. At the end of 4 years, she sold the lot for a net value of $15,000. What rate of return did she receive on her investment?
Elasticity of demand is a measure of the responsiveness of to changes in price. Over time the elasticity of supply for a particular good or service tends to become A tax on a service that has a relatively elastic demand and a relatively inelastic s..
1. nbspfor each of the following transactions identify whether or not it would be included in gdpnbspa. an accountant
identify economic factors that affect the real gdp the unemployment rate the inflation rate and a key interest rate.
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