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You are the chairperson of the Board of Governors of the Federal Reserve. You believe in a Keynesian model of the economy, and your goal is to keep the economy at the full-employment level of output. How would you respond (tightening or easing policy) in each of the following cases?
(a) Government purchases increase
(b) Corporate tax rates increase
(c) Expected inflation increases
(d) There's a beneficial oil price shock (and the LM curve shifts more to the right than the FE line)
In a market structure where firms are mutually interdependent, price competition is not common. Explain using the game theory matrix, with relevant assumptions, how firms make decisions when they behave collusively and non-collusively. In the abse..
An online store that has been successfully growing on its initial angel investment and revenues wants to invest $5 million to expand the business.
What will happen to the inflation rate if the rate of growth of the money supply increases to 7%, and, at the same time, the growth rate of velocity increases to 2%?
The market in which the assumption of continuous market-clearing seems to be LEAST applicable is the stock market, market for wheat or else.
The classic prisoner's dilemma involves two suspects, A and B, who are arrested by the police. Because the police have insufficient evidence for conviction on a key charge, they place the prisoners in isolation and offer each.
Elucidate action in the open market would the Fed have to take to prevent bank reserves from falling.
Each has a crucial role to play if the discipline system is to be effective. Discuss the elements of a company's discipline system or process and explain whether you feel it is effective or not in handling difficult or ineffective employees.
In the wake of the energy crisis in California, many electricity generating facilities across the nation are reassessing their projections of future demand and capacity for electricity in their respective markets. As a manager at Florida Power & L..
in the early 20th century worker productivity in the horndal iron works plant in sweden increased by 2 percent per year
Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard.
When developing short-run cost curves, it is assumed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses.
The Pulte Group, Inc., a New York Stock Exchange-traded corporation, is preparing for a briefing of investment analysts to be held in September 2011. As a member of the investor relations staff, you have been asked to prepare an overview of U.S. e..
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