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Suppose that natural real output in the country of Eudemonia grows at a steady rate of 3 percent per year. In the past, velocity has been approximately constant, and the Eudeonian Central Bank has maintained a target rate of growth of 4 percent per year for the money stock. What would be the resulting rate of inflation? Now suppose that the introduction of Internet banking allows people to make transactions online without holding large amounts of currency or bank balances. As internet banking spreads, velocity begins to increase at a rate of 3 percent per year. What will happen to the rate of inflation? How would the central bank react to the change in velocity if it pursued an NGDP target instead of a money stock target?
Elucidate why it is important for managers to understand the mechanics of demand also supply in both short-run also long-run
Assume the price falls to $ 7.50. What think would be a short-run impact on the production of the company. What would be the long term.
If the price of coffee increases, we get a positive rate of inflation, even if no other price rises. Is this really inflation? Explain.
identify the circumstances under which Sarah should choose package A, the circumstances under which she should choose package B.
Now allow Foreign and Home to trade with each other, at zero transportation cost. Find out and draw a graph of equilibrium under free trade.
When a war breaks out in the Middle East, the price of gasoline rises, and the price of used Cadillac falls.
Why might these firms agree to form a cartel. If such a cartel is formed, use the prisoner's dilemma to explain why it may or may not survive.
Education (e.g., elementary and secondary education, higher education-undergraduate and graduate) b. Government (e.g., the Social Security Office, the Internal Revenue Service)
Is this analysis consistent with the proposition which money has real effects in the short run but is neutral in the long run.
Illustrate what effect does the income tax have on consumption and labor supply? Explain your results in terms of income and substitution effects thoroughly.
What is the sampling distribution of p ? for this study? What is the probability that the sample proportion p?
Explain the multiplier concept as it applies in this case. Illustrate what are the qualifications and limitations of the Multiplier Model.
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