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Using the IS/LM model, demonstrate the effect of each of the following changes.
a. An increase in government expenditures.
b. A fall in the nominal money supply.
c. A decrease in the price level.
d. An increase in the lump sum tax.
e. A fall in the tax rate.
How do you think each of the following affected the world price of oil? (Use demand and supply analysis.)
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
Determine the profit-maximizing prices both firms will charge. In addition, calculate the price-cost margin for each firm and indicate which has more pricing power and why.
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
A monopolist faces the demand curvep =11 - Q , where Q is measured in thousands of units. What is the monopolist profit maximizing price and quantity? What is the profit?
What is the profit-maximizing price and output? What is the total profit? What is the price elasticity of demand at the profit maximizing output?
The advent of the one man bus involved more capital equipment: an automatically operated coin box and door control device - to name two of the capital goods that replaced the conductor."
Construct a table shoeing Grey's marginal sales per day in each state. Calculate Grey's maximum monthly commission income.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses throughout the past several years. What impact will the repeal have on the exporting of jobs to foreign countries? describe by using isoquant ..
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
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