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Illustrate this on two graphs with the AS/AD curves: show one AS/AD diagram with a soft monetary policy, and next to it another AS/AD diagram we an aggressive monetary policy. Show pi_1 and Y_1 as well as the long run values of inflation and short-run output on these graphs.
Describe the different aspects of the business that you should be looking at from an economics perspective in order to run the company efficiently and explain using economics theory how you would improve the running of your company.
q1. you bought two new cds with the last 30 in your checking account and your next payday is on monday. what is the
Given equipment price, E , what is the price of service in terms of E? Competition in the equipment market, however, drives the equipment manufacturer's long-run profit to zero. What is the price of equipment?
Elucidate how does the real wage rate at point c compare with the real salary rate at point a. How do nominal wage rates compare at those two points.
Movie attendance dropped 8 percent as ticket prices rose a little more than 5 percent. Illustrate what is the price elasticity of demand for movie tickets. Could price elasticity be somewhat overestimated from these figures.
A cappuccino vending machine is designed to dispense an average of μ oz per cup. If the ounces per fill are normally distributed, with a standard deviation of 0.4 oz, what value should μ be set at so 6 oz cups will overflow only 2% of the time?
Elucidate what would be the P and Q in a competitive industry. Find CS and PS for a competitive industry and a monopoly. compare them.
Suppose commercial banks have no excess reserves. Then new deposits totaling $1 billion come into the banking system. If the required reserve ratio is 20 percent, what is the maximum amount by which banks can increase deposits in the entire system?
How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your class..
What is the relationship between a perfectly competitive firm's MRP curve for an input and that firm's demand curve for that input?
There is a loan for 5,00 dollars with interest of 8 % annually. There is another way to repay the 5,000 dollar by making 4 annual payments of 1,000. Then what would the 5th payment be?
Suppose that the labor market is competitive and there are a total of 1,000 black workers and 1,000 white workers (who each supply their labor in elastically). Both black and white workers are equally productive, having constant individual dollar pro..
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