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Imagine that the central bank of an economy with unemployment doubles its money supply. In the long run, full employment is restored and output returns to its full- employment level. On the (admittedly unlikely) assumption that the interest rate before the money supply increase equals the long-run interest rate, is the long-run increase in the price level more than proportional or less than proportional to the money supply change? What if (as is more likely) the interest rate is initially below its long-run level?
Conduct an online search related to recent (within 1 year) developments in speech (voice-recognition) technology. Discuss the current status of speech technology as a viable business application
Has the Fed saved us from another Great Depression? Since the recession of 2007, the U. S. Federal Reserve has increased bank reserves and brought the federal funds rate (interest rate charged with banks on interbank loans) down to 0.25 %. Did this p..
Discuss a concept tghat could be related to your employment or other real world experiences on market structure
Determine the impact of the increase in the price of soybeans on the rental rate of land and determine the impact of the increase in the price of soybeans on the welfare (real wage) of labor.
Parker County Community College (PCCC) is trying to determine whether to utilize no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost ..
The employees at Warren Manufacturing Company are unionized. As minimum requirements, the union members insist on keeping a work force of at least 300 workers, and accepting an hourly wage rate of no less than $8. Beyond those minimum requirem..
Explain how scarcity and choice are related. Economic theory says that a rise in the price of a good will cause people to buy less of it. If the price of meat increases and John Doe buys more meat, has the theory been refuted
In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit’s city council is considering passing a law that would give investment tax credits to auto manufacturers.
How are the laws of supply and demand illustrated in this graph - What is the equilibrium price and quantity in this market?
suppose an inflationary economy can be described by the following equations representing the goods and money markets
The "crowding-out effect" suggests that A. excessive population in the cities is pushing people into the suburbs.B. if consumption spending increases investment spending must decrease. C. tax increases are paid primarily out of saving and, therefore,..
Calculate the velocity of money in 2007 and 2014 - Suppose the velocity of money remained constant between 2007 and 2014 and that real GDP in 2014 was equal to its actual value. What would be the value of the GDP deflator?
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