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How the Fed uses the Money Multiplier to fight inflation
Why do you think the Fed evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain economic variables? Why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation?
What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?
Discuss the impact on wages, employment in the industry, and the economic welfare of the following input market structures. In which case will the deadweight loss be the smallest?
A hearing is scheduled for your company to present arguments that your firm has not increased its market power through the merger. Can you do this and how. What evidence might you bring to the hearing?
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
Find the equation of the new demand curve for Chevrolets. What is the relationship between D C and D' C ? What explains this relationship?
Economic forecasters predicted that consumption also GDP would increase because of higher refunds on income taxes.
Illustrate how you would use the rest of the information above to better assess the impact of the influx of immigrants.
Describe the point price elasticity of demand. What is the new point price elasticity if price is raised.
The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve.
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
Suppose a monopolist with cost function C (Q) = 3Q selling to 2 segments of consumers where Q is total output produced by the monopolist in both markets. If the monopolist can use a single two-part tariff, compute the two part tariff that will maxim..
Explain how did Lucas contribute to the development of the Keynesian economics. What was his concern with economic growth and development.
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