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Suppose the real interest rate is 4% and the expected inflation rate is 3%. If the money supply increases by 10% and output, the real interest rate, and the expected inflation rate are unchanged, then the price level increases by
Compute a 99% confidence interval rather than a 90% confidence interval. The increase in confidence indicates that we have a better interval.
The price elasticity of demand is -1.2. What type of elasticity is this?
Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, total revenue will be
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
q1. why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal
q1. alpha airlines the only carrier currently offering flights to and from town a heard that beta airlines was thinking
If you were an executive working for an emerging automaker from china or india, assuming your firm only has the ability to enter on Latin American country for the time being, which country would you recommend Brazil or mexico?
Illustrate what would happen in the market, please Specify whether the policy would cost the Chinese government anything also if so, and explain how much.
Insurance Consider a risk avers agent who owns an asset worth 100 USD. The agent can choose one of two actions: being cautious a1 or being negligent (a0). The agent’s payoff from having wealth w and taking action a is given by u(w_1,a_0 )=√x and u(w_..
Spring is here, and Becky and her dad would like to go fishing for the weekend in Washington. Becky could either go to the river in town where anyone can fish without a permit, or she could drive up to a stream located on her family's property in the..
A new good or service for an existing business or a business that you want to develop and how will you determine the profit-maximizing quantity?
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
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