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Use the liquidity preference framework to show what will happen to interest rates if the Central Bank increases the money supply. Make sure to include a fully-labeled graph for full credit.
Use the liquidity preference model to show why interest rates are said to be pro-cyclical (i.e. it rises when the economy—in terms of GDP—is expanding, and falls when it is contracting). Make sure to use a fully labeled graph for full credit.
Draw a graph to show the average total cost, average variable cost, average fixed cost and marginal cost curves for a competitive firm. A decrease in the annual rent the company pays on its transport storage facility. With the aid of relevant diagram..
Suppose that the citizens of Hungary can purchase all the oil they desire at the going international price. If the Hungarian government levies a tax on oil, who bears the burden? Illustrate your answer wit h a supply and demand diagram.
Consider the following short-run production function: q = 5L^2 − 1/3L^3. Derive a marginal product of labor. Derive an average product of labor. At what level of L is the average product of labor maximized?
In determining the best variables to choose for a linear regression model scatter plots can be used. What is an indicator of a good independent variable candidate for regression analysis?
determine if the firm is operating in the short run or the long run. old york & company, a women's retailer, is not under a wage contract with its employees, but it is currently in a one year lease at its mall location.
The following information is available for an economy: Consumption function: C = 220 + .8(Y-T) Investment: I = 400 Net Exports: NX = -140 Full Employment or Potential GDP = 3500 Currently, Calculate the current level of (equilibrium) GDP. Suppose tha..
What are the main elements of Raymond Vernon’s product life cycle theory of international trade and investment? Is Vernon’s theory still relevant in the 2010s?
K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). Illustrate what is the average product of labor.
The inverse demand function for water (w) among urban users is given by D(w) = 10 - 2w, and the inverse demand function for water among rural users is given by D(w) = 6 - w. The total amount of water available is W = 5. What is the efficient allocati..
Compare murder rates with and without death penalty. Cross-section of states: is murder rate higher on average in states without executions.
Choose the statement about inflation rate targeting that is incorrect
Suppose that you are evaluating the market for Kellogg's cereal. The prices of Post and General Mills cereals increase. What will happen to Kellogg's cereals?
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