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1. What is the "velocity of money"? Why is it important to the macro-economy?
2. Why would some households with increases in "household wealth" continue to consume at their prior household level even given household wealth increases? How would this be related to the velocity of money?
3. Why is U.S. Government spending crucial to the creation of higher "new equilibrium levels"? Is this good for the macro-economy? Explain why or why not.
determine the main differences between microeconomics and macroeconomics? give an example of a microeconomic and
The value of cross price elasticity of demand between goods A and B is 0.75, while the cross price elasticity of demand between goods A and C is -1.38. Characterize A & B and A & C as substitutes or complements and what are her accounting profits..
1. Calculate how the spot exchange rate will adjust towards equilibrium, given that everything else stays constant. 2. Explain the mechanism that leads the market towards the equilibrium? 3. Graph this market and the adjustment towards equilibrium
john q is planning to buy a bond having a face value of 100000 for 90000. the bond is paying 8 per year payable
Explain why Regulation Q caused difficulties for banks and other depository institutions, especially during periods of rising interest rates.
Explain what was happening to the economy in terms of the AS/AD model, including what would need to happen to bring us out of the "recessionary gap". In other words, using the AS/AD model as a starting point, explain the economic situation of 2008.
A firm wants to lease some land from you for twenty years and build a warehouse on it. As your payment for the lease, you will own the warehouse at the end of the twenty years.
Distinguish between a customs union and a common market. Explain why there has been a growth in the underground economy of the United States.
If a monopolist is creating a level of output at which demand is inelastic and the firm is not maximizing profits.
Suppose that a group of physicians establishes a joint practice in a remote area. This group provides the only health care available to people in the local community,
discuss the various ways governments can handle externalities such as noise from a local airport or a barking dog or
How and why the official unemployment rate (measured by the BLS) might understate the true level of joblessness in this country? How and why the official unemployment rate (measured by the BLS) might overstate the true level of joblessness in this co..
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