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Money supply : key informaiton
Suppose banks install automatic teller machines on every block and, by making cash readily available, reduce the amount of money people want to hold.
a.Assume the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to the aggregate demand?
b.If the Fed wants to stabilize aggregate demand, how should it respond?
Utilize these determinants in judging either demand for every of the following products is elastic or inelastic.
Given the industry's concern that workers shirk, they start employee at $10 and increase the pay by $0.40 each year they are on the job.
Explain demand for cassette players is price elastic also they are cyclical normal goods.
The owner of the Los Angeles Dodgers has commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P = 22 - 0.2Q-How much revenue does the owner make at the current price?
All economics textbooks give examples that show diminishing marginal utility as consumption rises-However, it could be argued that a rational buyer should never experience negative marginal utility. Why?
What price will the monopolist charge and how much output will he produce? Sketch a diagram of this market and show the equilibrium price and quantity. In addition, calculate the firm's profits.
Illustrtae what does this imply about the effectiveness of monetary and fiscal policy to reduce the unemployment rate.
Observe the characteristics which influenced the buying behavior of each person interviewed. Based on the people interviewed
In other situations it would be reasonable for a purely competitive wheat farmer to raise his price per bushel because he could reduce his variable costs by selling less at a higher price. True or false, and why?
You are the manager of a firm that manufacturers front and rear windshields for the automobile industry. Due to economies of scale in the industry
Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?
How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
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