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Consider a country that has experienced a hyperinflation. In general, countries with higher inflation rates tend to have less stability in the inflation rate, making it difficult to forecast. If this country wants to reduce its inflation rate, state which of the following monetary regimes is least likely to succeed: exchange rate target, money supply target, nominal interest rate policy. Which approach is most likely to succeed?
If the elasticity of demand by students for students for MSOffice is 5, while the elasticity of demand by business professional is 2, and the marginal cost of producing another bundle of the office suite is $50, what are the profit mazimizing pric..
Given the economic situation today, outline the discretionary fiscal policy you would promote if you were president. In terms of the AD-AS model.
Assume the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The firm has a marginal and average total cost of $50per unit.
Write about the problem or issue as if you are explaining it to someone who has never taken an economics class.
1. Explain why you agree or disagree that Americans seem willing to sell their own privacy cheaply while simultaneously craving private information about one another. 2. Describe what role you think technology has played in these trends towards pri..
Draw the budget constraint for a world with both fixed time costs and fixed money costs of working. What is the effect of fixed costs on the reservation wage?
If the government gave each recicient family a $7,000 check instead of enrolling them in the Medicaid program most of the families would spend that money to purchase health insurance.
Characterize this as an example of a positive or a negative externality and the efficient level of a negative externality is always a positive amount.
With the help of an example discuss the characteristics of globalization. What are the factors that contribute to the attractiveness of a country as a market or investment site? What are the implications of cultural differences for international busi..
How big will that budget have to be before he would spend a $1 buying a first cup of coffee?
Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale.
the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, productivity, wages and price levels.
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