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Economists usually maintain that policy designed to increase aggregate demand cannot have any long-run real effects. What lies behind this argument?
How does Technology work itself into LRAS?
Drawing on current business publications, find an article in which either fiscal or monetary policy makers were describing their goals of maintaining stable prices, full employment, and adequate economic growth over time. Which goal was the most impo..
Suppose the US. Unemployment rate at the start of 2010 had been 6% instead of 9.7%. How many more people would have been working (assuming the labor force remained the same)?
Explain the impact of Wal-Mart's supply chain management on its total product, marginal product, and average product curves. What has been the effect on its retail prices?
Describe two (2) reasons why The Coca-Cola Company would choose to protect its soft drink formula as a trade secret, as opposed to using another form of intellectual property protection (for example, a patent).
Consider the Cournot duopolists firm 1 and firm 2. They produce homogeneous products and simultaneously choose quantities q1 and q2, respectively. Each firm is trying to maximize his own profit. From firm 1’s profit maximization, derive firm 1’s best..
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Consider a 1-year forward contract on a stock that pays no dividends in that year.
Consider the following (not so unrealistic) scenario for a conflict between Iraq and the United States in the Persian Gulf area. Iraq moves first and decides whether or not to invade Kuwait. what is the subgame perfect equilibrium for the game?
If the price is $20, how many pairs of jeans will be demanded by Bert? If the price is $20, how many pairs of jeans will be supplied by Ernie? If the price of milk rises, what will happen to the demand for gasoline? You need to provide an explanation..
In January, the interest rate is 5 percent and firms borrow $50 billion per month for investment projects. In February, the Federal government doubles its monthly borrowing from $25 billion to $50 billion. That drives the interest rate up to 7 percen..
In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?
The fed choice of monetary policy strategy is
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