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Money, Banking, and Monetary Policy: What do economists mean when they say that monetary policy can echibit cyclical asymmetry? How does the idea of a liquidity trap relate to cyclical asymmetry? Why is this possibility of a liquidity trap significant to policymakers?
Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?
The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further.
Government imposes excise taxes on goods which have inelastic demand, such a cigarettes.
Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic. Illustrate your answer by assuming that with advertising, a firm's demand curve has price elasticity of -1.5 and without advertising, it is -2.
Elcidate how slower inventory turnovers, slower receivables collections, or faster payments to suppliers would influence the numbers produced by a cash budget.
Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?
Denote by mi the median favorite position among the citizens of state i, for i = 1,2; assume that m2
Allied Box offers mail order storage containers for fine china producers. The firm is low-cost provider of these boxes with fixed cost of $480,000 per year,
Suppose the company is considering using an amount equal to 10 percent of its retained earnings to invest in one of the two mutually exclusive projects.
Under monopoly, what is the relationship between price and marginal revenue. At what point does the firm produce in order to determine the output level and price required to maximize profits. What is the overall constraint on the monopolist
Someone prepare the claim that immigration must always be good for the economy because the increased supply of labor will result in a higher GDP.
Given the high levels of unemployment, many workers aren't getting wage raises very easily. Will the change in productivity likely increase or reduce prices in the economy?
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