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Suppose the U.S. economy is in a recession and there is rising inflation. Suppose you are in charge of monetary, fiscal, and exchange rate (i.e., influencing the value of the dollar) policies. Using the AD/AS model, illustrate and discuss the options available to you which would end with the economy in a long run equilibrium. To the extent possible, also discuss the implications of your various options—what good outcomes as well as bad outcomes will result.
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P x = $5, P y = $10, X = 20, and M = 500?
Over the last three years, as the result of decreasing prices for digital cameras, the price of developing traditional 35mm film has increased 5% yesrly. How would I go about graphing this impact on the market for 35mm cameras.
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:
Elucidate how tax credit to a business would help to stimulate the economy.
suppose more home owners cant afford their mortgage and gave up their houses. In the context of the market quantity supplied and quantity demanded diagram, what will happen to both markets in term of Q's, P's and equilibrium.
Assume the economy is slumping into recession and needs a fiscal policy boost.
A monopolist has a constant marginal also average price. Compute the monopolist's profit maximizing quantity, price also profit.
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
Which interest rate represents the opportunity cost of holding money - the real or the nominal interest rate? Explain and argue intuitively why the nominal interest rate (eg, the yield on a riskless bond) cannot fall below zero.
Discuss the role of social diversity and business ethics as it relates to globalization? Consider how different cultures around world perform such business activities.
The demand for polished bronze is given by P = 100 - Q/2. Production of polished bronze is controlled by Bronze Indentify BIs profit maximizing output and price. What is the cost to the town of removing the mercury pollution?
Assume that, from an initial consumer equilibrium position, price of good X falls while the price of good Y remains the same.
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