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Suppose the bank of canada reduces the money supply by 5%.
a. what happens to the aggregate demand curve?b. What happens to the level of output and the price level in the short run and long run?c. according to okun's law, what happens to unemployment in the short run and in the long run? ( hint: okuns law is the relationship between out and unemployment)
d. what happens to the real interest rate in the short run and the long run? ( hint use the model for the real interest rate to see what happens when output changes)
Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity,price) points of (50, $10) and (54, $8).
Your boss has asked you to assist him after normal work hours with shredding some documents. The division vice president announced a federal level investigation in last week's "All-call; All-attend" staff meeting. You need your job and you want to..
Computer software utilizes skilled labor relatively intensively.If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U...
What is the average fixed cost of producing 2 units of output based on the following table:
Because of the change they created for taste and preferences and the higher income market, the gourmet coffee houses had a win-win in a period of falling wholesale prices and increasing retail prices
What are the possible reasons for the price rise mentioned in the news article? Use demand and supply models to illustrate what has happened in the egg market. Make sure that you clearly state any underlying assumptions in your analysis.
Assuming other things equal and capital and labor are fixed in quantity and using our aggregate production function and factor market diagrams, illustrate what happens to output, the real retal rate on capital, and the real wage of labor following..
car breaks down and you are deciding to have it repaired. The most relevant issue in this economic decision is:A. How much you spent on past repairs on the car B. How much you paid for the car when you bought it
A substantial increase in imports of apparel from China that intensively use unskilled labor has generated some unrest in import competing industries, particularly among non-college workers. If all US apparel imports were from Taiwan only, would y..
This briefing is particularly important because of the global financial crisis that began in 2007. The briefing is required to provide more foundation for the finance team because they are not well versed in international aspects of finance.
Indicate whether each of the following statements is true or false and explain why. a) A competitive firm that is incurring a loss should immediately cease operations.
some financial intisutions may take action to remain profitable because of the lower interest rates. Obviously when the interest rates are lower, companies tend to lose money, because it is cheaper for consumers to pay back loans. Financial stabil..
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