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Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth rate of the velocity of money is 2% and that the real economic growth rate is 4%.
Now assume that oil prices increase. After the increase in oil prices, the inflation rate in the economy is 9%. Now assume that the federal government decides to increase government spending in order to combat the rise in oil prices. After the increase in government spending the total spending growth is now 14%.
1. After the increase in government spending, what is the growth rate of the velocity of money?
how many standard errors it is away from zero. If it is not very far from zero n we might ignore it; if it is far away from zero n we might consider it important. But how far is ‘far'.
Using the principles of supply and demand, develop a plan to alleviate the shortage of math and science teachers with and this country. Try to use price and non-price determinants as your tools to reach equilibrium. Defend your position using economi..
What are the similarities and differences between horizontal and vertical equity?
By itself, the substitution effect of an increase in the wage rate will
Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?
q1. bertrand price competition the two firms have the same demand curve p100-4q marginal cost of firm 1 is 5 and for
The political business cycle refers to the fact that about every four years some politician advocates greater government control of the Fed.
Economic laws are established in order to make successful prediction of the outcome of human action.
What are some contemporary technology issues? How do we learn to accept the social responsibilities of educated citizens in a global technological society?
Anticipate what business law may look like 20 years from now and give your opinion on what you believe students will need to know in order to be successful in the field. Provide a rationale for your response.
Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what ..
The normal supply and demand models take the supply and demand of a particular good and show that the equilibrium price is where the two curves intersect. How do we reconcile both of these observations?
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