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Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
Which of the subsequent is directly included in the calculation of the GDP?
Illustrate what happens to output and the optimal scale of a firm, and price if there is a free entry into the market.
If it causes output to increase by more than 10 percent, production function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale.
Assume the farmer buys insurance that pays 3$ if it doesn't rain but costs 2$. Illustrate what is their consumption when it rains.
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, Illustrate what was the real interest rate you paid.
Illustrate what is the tax burden on consumers also producers. Illustrate what is the deadweight loss.
Indirect finance is more important than direct finance in most countries in part because of information costs associated with lending. Explain why are financial intermediaries relatively more effective at reducing these costs
Suppose a nation picks 1000 young adults at random to serve in the army. Illustrate what information do you need to determine the cost of using these people in the Army.
Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantages were used in your simulation.
Consider a good whose consumption takes place publicly. On what factors would your decision to buy that good depend.
Illustrate what was the growth rate of the GDP deflator between 2007 and 2008. What was real GDP in 2007 measured in 2000 prices.
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