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Suppose central bank observes directly aggregate demand shocks or fully anticipates them. Formulate a monetary policy rule that would insulate the economy from aggregate demand shocks. This monetary policy rule would keep inflation at the target rate and GDP at potential (ie. on trend) when an aggregate demand shock hits the economy. Show how it would work in the context of the IS-MP diagram. How would this monetary policy rule depend upon the sensitivity of investment to the real interest rate?
Explain why do economists attempting to forecast short run future changes in real GDP and employment look closely at information on business inventories and unfilled orders?
Record the following given transactions of a company in general journal form;
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
You do not like this as it will be possible for the large money center banks in Washington, Las Vegas to open branches in your banks geographic market area.
Marketing managers feel it is 1st important to get an idea of the climate in country towards foreign trade and investment. Examine Indonesia's trade policies as to how they advertise or restrict international trade.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
illustrate what types of fiscal and monetary policies are taken to stimulate the economy during the recession phase of the business cycle.
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
Can you find an example of natural resource policies (in the USA or elsewhere) that attempt to achieve efficient rates of harvest for renewable resources?
Compute the income elasticity also elucidate how sale of the novels would change during a period of rising incomes.
Between the types of costs faced by a firm how can technology help firms to lower their costs. What are some specific examples of how firms have used technology to lower costs.
Compute the effective price reduction resulting from the coupon promotion.
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