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Q1. Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2. Explain what happens; instead, is that the Fed does not raise aggregate demand as much as the public expects (bias upward). Instead the Fed pushes the AD curve from AD1 to AD3. As a result, according to new classical theory in the short run the economy moves to point
Q2. Bank A and Bank B both have assets of $1 billion. The return on assets for both banks is the same. Bank A has liabilities of $800 million while Bank B's liabilities are $900 million. In which bank would you prefer to hold on an equity stake?
The cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output.
Estimated regression equation for which quantifies the demand for Widget
Explain how is the cross elasticity theory used to empirically define economic markets.
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Elucidate how much the equilibrium quantity of wheat sold. Elucidate the actual cost which is equal to the equilibrium cost.
Which among the equation will you choose for a better demand estimation. Illustrate answer in the language of statistics.
A local community voting to raise property taxes to increase school expenditures
Find the equation of the dominant firm's derived-demand function
When you purchase and eat a hamburger, no one else can eat the same hamburger. When you download a file on the Internet, the file is still available.
If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they use.
Why would we expect that the price elasticity of demand for the product of an individual firm would typically be greater than the price elasticity of demand for the product overall.
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