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Suppose velocity of money is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Consider this a \baseline." In each case show (don't just state) what's happening. I.e., show your work. (a) What is the rate of inflation in this baseline case? (b) What happens if the growth rate of money rises to 10% per year? (c) What happens if the growth rate of money rises to 100% per year? (d) Return to the baseline case; what would happen if real GDP growth were to rise to 5% per year? (e) What would happen if real GDP growth fell to 2% per year? (f) Again go back to the baseline case; what happens to inflation if money velocity rises at 1% per year. What might cause money velocity to change like this?
Discuss how the two cases Microeconomic influences on McDonald's in China. Drawing on current business publications, find some update facts for each case that support this theme.
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits
Elucidate the concept of the opportunity cost. your answer could consider opportunity cost in the context of the production possiblity curve.
expected profit from machine decreases. Rental cost/user cost of capital will decrease when: real interest rate falls. This fully anticipated monetary expansion will cause which of following to occur.
Illustrate what major legislative actions has congress taken As 1993 to reduce size of Federal deficit. Why process is politically painful to Congress.
Illustrate what does the evolution of Coke's strategy tell you about the convergence of consumer tastes and preferences.
How many Argentine pesos would it cost given the new exchange rate you just calculated.
Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend
Provide the information, is it surprising that the company's revenueincreased when it decreased the average selling price of its phones.
If there were only one seller, illustrate what would be the equilibrium price and quantity.
Converse the positive also negative contributions of FDI inflow to the competitive benefit of host countries with regard to the subsequent matters
A product has an arc elasticity of -0.8. at a price of $7.00, 1000 units are sold per period. In order to sell 1200 units, what will the new price be. Illustrate what is the revenue at the old price ($7.00)and the new price.
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