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1. What is the "velocity of money"? Why is it important to the macro-economy?
2. Why would some households with increases in "household wealth" continue to consume at their prior household level even given household wealth increases? How would this be related to the velocity of money?
3. Why is U.S. Government spending crucial to the creation of higher "new equilibrium levels"? Is this good for the macro-economy? Explain why or why not.
Suppose that a household in a two-period model has income of $30,000 in period 1 and $25,000 in period 2, and the interest rate is 75%. Assume that the price of the goods $1 in both periods. Suppose that the household decides to consume $26,000 in pe..
Identify the marketplace structure of the electronics retail sales industry. Discuss possibility of short-run and long-run profits in that industry.
Draw the per capita production function and supporting curves to capture the economy and provide a brief economic explanation of the consequence of lower savings on long- term growth rates.
Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU) and remained at that low level for a year or longer? Explain your answer in a few ..
Specify each by stating its purpose, by describing its parameters. Then write a Java interface for the methods of a matrix. Include javadoc-style comments in your code.
What is the opportunity cost of mowing a lawn for Fred? What is the opportunity cost of trimming a hedge for Fred? Who has a comparative advantage in mowing lawns? How can you tell?
1. In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to
Pooling is used in calculating the standard error for the difference between means when the population standard deviations are unknown, for which of the following reasons?
What is traded in factor markets? - Economists generally believe that a country should specialize in the production of a good or service if:
Calculate how many whole days will be required to complete an order for 20,000 units of item B. The above orders for Items A and B are invoiced together, and the invoice total is £450,000.
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
In the coordination failure model, suppose that consumers preferences shift so that they want to consume less leisure and more consumption goods. Determine the effect on aggregate variables in the good equilibrium and the bad equilibrium.
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