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When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should? continue to produce the level of output at which marginal revenue equals marginal cost. increase output to minimize its losses. reduce output to the level at which price equals average variable cost to minimize its losses. shut down to minimize its losses.
Elucidate why and the benefits/drawbacks of this strategy. Describe each tool and how it is used to achieve it desired effect on the US money supply.
The return to a college degree raise a lot while college enrollment remained steady.
If the money supply increases, show the three different (simple, single variable) responses to the increase. b. What best describes the response to monetary policy in 2013? c. What best describes the response to monetary policy in 1973?
Illustrtae what are the nominal rates of interest for both the United States and the euro area?
Elucidate the steady state level of capital and how savings affects output and economic growth. This provides a brief introduction to the solow framework.
The Rusty Anchor Bar has two-types of patrons: legal and underage drinkers. Even though it is illegal to allow entry to underage drinkers, there is no perfect way to identify underage drinkers since they often use fake identification card.
The complete lung-run model for exchange rate determination posits that changes in the nominal interest rate also affect the exchange rate (E). Recall that the complete model combines the QTM, PPP and the Fisher effect. The simple lung-run version..
The following table provides data about the economy in Argentina. Column A is the year, Column B is real GDP in billions of 2000 pesos, and column C is the price level.
What do you understand by the terms 'inflation' and 'unemployment? Identify their main elements and causes. What is the relationship between inflation and unemployment? Use diagrams to answer the question.
A country with a relatively small + aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increase in the AD curve (hyperinflation countries like Germany before WWI..
The level of investment down because of a lack of confidence in the economy. Interest rates are kept artificially low by the Federal Reserve for several years.
This seems to have reversed itself somewhat in recent years. Illustrate what factors might have been at work.
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