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Suppose the factors of production are ?xed and furthermore suppose the Fed announced today that they are going to reverse the quantitative easing e?orts and decrease the money supply in the near future.
A. What happens to expected in?ation?
B. What happens to the money supply today?
C. Assume we are utilizing our real money balances model where money demand depends not only on income but also on the cost of money. What happens to prices today?
Draw diagram in each case and explain answer: 1) the economy experiences a period of rapid growth, with rising corporate profits 2) The federal government imposes a tax of $10 per bond on bond sales and bond purchases.
A small group of dockworkers in California, working for Topside Industries, an international shipping company, was being investigated concerning its involvement in a theft. The theft itself was a rather simple operation. The chapter identifies some o..
Sam sells shavers also Alvin sells after cut off. Imagine Sam discovers a new production technique that lowers his costs of production.
Explain why the following statement is either true or false. An increase in the wage rate of labor (with no change in the rental rate of capital) shifts the long-run cost curve upward (at each level of output), no matter what the elasticity of substi..
Discuss how successful airlines control the use of discount fares by imposing and enforcing appropriate conditions on these fares, and how they utilize state-of-the art revenue management systems. Provide an example(s).
An increase in aggregate expenditures resulting from a decrease in the price level is equivalent to a:
Why are costs important in economics? Why don’t economists use the same cost data as accountants use? What is the real cost of putting an unemployed laborer to work raking leaves or digging holes and refilling them during a severe recession? Explain.
A monopolist offers a single price to two consumers with the following demand functions: A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produce..
Suppose an individual faces employment risk of the following form: Her employment is subject to business cycles in which she faces the risk of a layoff with probability 10%. When she is employed, she receives an income of $100. She earns nothing when..
How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land.
In the most recent recession of 2008 and 2009, the United States saw a declining GDP, rising unemployment, and, sometimes, deflation. What type of fiscal and monetary policy is appropriate to fight the recession? Analyze these using the Phillips curv..
Every week, more and more applications are available for Droid-based smartphones. How does this affect the optimal price for Droid-based smartphones? Please show the detailed and appropriate rationale modeling you use.
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