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Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous events?
a. Both the market clearing price and equilibrium quantity will rise.
b. The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.
c. The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will increase.
d. The market clearing price will fall, but the equilibrium quantity will rise.
What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy a
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Draw the PPC model of peace time goods and war time goods and describe its characteristics. Label point A as being more toward peace time goods than war time goods and show graphic
what are the model of money supply
Which of the following will cause property crime to increase? a) An increase in jail terms. b) A decrease in personal incomes. c) An increase in the probability of arrest.
Consider the following macroeconomic model: Y = C + I + G + NX C = 100 + 0.8 YD I = 300 - 1000 i NX = 195 - 0.1 Y - 100 (E.R.) E.R. = 0.75 + 5 i M = ( 0.8
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