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Given that monetary policy has only a long term effect on an economy, central bankers should follow monetary rules rather than operate a more proactive policy approach as inflation targeting central banks currently do. Discuss.
Illustrtae what is the final impact of expansionary fiscal policy on the price-level and real output.
During the Great Depression, Tobin"s q A) rose dramatically, as did real interest rates.fell to unprecedentedly low levels.
How have these aggregates been growing in the past year compared with the value if you can, download the data from the internet , or enter them by hand into a spreadsheet, and see if you can plot the data to compare.
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
In this model of society no capital and no wage labor. The commodities are valued based on hours of labor that needed for the production.Based the above the only input that used to find the cost of a commodity is labor.
Assume that initially equilibrium was 200 units and that this was also full employment level of income
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Suppose a firm has a constant marginal cost of 10$. The current price of the product is 25$, and at that price it is estimates that the price elasticity of demand is -3.0
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
Consider a 2-company Cournot model. Let ci (i=1,2) denote firm i's cost per unit of output produced, and suppose that c1 > c2 .
Mary's Fence Post Factory faces a perfectly elastic demand curve for fence posts at a price of $39 per post. Let Q represent the number of fence posts that Mary makes. Mary's total cost and marginal cost curves for making fence posts are: TC = 4,0..
Elucidate tools used to pursue expansionary and contractionary fiscal policy.
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