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Show the equilibrium in the above economy (as described in Question3) on a properly labelled diagram using Demand and output lines. If the economy's current production is at $1800 million, how would you characterize the situation in the economy? What needs to happen for this economy to be in equilibrium?
Suppose that initially the money supply is 2 trillion the price level equals 2 the real gdp is 4 trillion in base year dollars and income velocity of money is 4 . Then suppose that the quantity of money in circulation remain fixed but the income velo..
Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract. Determine the future worth in year 10 of a mineral lease that yielded income of $14,000 in years 1 through 4 and then amounts that decreas..
John and Peter both want to save some money. John decides to save $1,000 every year in an account that pays 4% interest per year compounded annually. How much will be in each person’s account at the end of 20 years, counting from when John started sa..
(a) Calculate the average credit taken by the retailer, in days. (b) Give a brief explanation of the average credit taken by the retailer.
The short-run total cost function for a firm producing skateboards is TC= 18q^2-9q+72 where q is the number of skateboards per week. (1) What is the fixed cost? What is the variable cost?
If the government were to make university attendance mandatory and subsidize tuition costs with tax dollars, how might this affect a nation's economic growth?
What is money and why do people hold money even though it pays a lower return than other forms of financial assets. The Fed wants to reduce the money supply what are the three ways it can do that? What is a banking panic? Prior to FDIC, why might a s..
Is it unethical for the American government to engage in global trade with countries that degrade women, imprison political dissidents, censor information, and the like?
Breaking news reports claim that household incomes are strong and growing. Assuming all other applicable indicators remain the same, how would you expect this to impact the position of the Demand Curve in the Product Market? You read an article that ..
Elucidate how each of the following would affect the demand schedule you derived.
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian Crystal Works estimates total and marginal production costs to be. What is the optimal level of production..
Suppose that a security costs $1,500 today. A. Calculate the percentage return on the Security if the payoff to the security in one Year is $1,000, $1,500, $2,000, or $2,500
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