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Write out the Quantity Equation of Money. What do we mean by the velocity of money? The real GDP in the U.S. grows at a rate of 3% in the long-run. If the QTM holds, by how much should money supply increase so that the long-run inflation rate in the U.S. economy is 2%? Explain your answer.
The terms of trade between two countries refer to
It is a hot day also Bert is thirsty. Here is value he places on a bottle of water.
Assume income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Now change income to $12 and show a demand curve for pizza.
A local golf course just bought a lawn mowing machine. It comes with 2 yr free maintenance. The manager wants to provide enough money in an 8.00% bank account now (EOY -0) to have a fund out of which he will pay for needed maintenance. At the end of ..
Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
Under the first plan he pays $0.25 per minute of connect time. Under the second plan, he pays a lump sum of $30 per month and only $0.10 per minute of connect time. Determine David's optimal consumption bundle and his choice between the two plans.
Discuss in detail whether education should be publicly provided. (Hint: refer to its characteristics as public good, positive externality, market inequitable, etc.)
When the general price level rises and firms decide not to change their prices in the short run, this can be attributed to:
Elucidate how Illustrate what occurs to demand for L1 when w2 increases. Illustrate the scale also substitution effects.
Draw in excel an isoquant that shows little substitution between two factor inputs and on that shows large substitution. Vertical represents capital and horizontal represents labor
The owner of a business is considering investing $55,000 in new equipment. She estimates that the net cash flow will be $5,000 during the first year and will increase by $2,500 per year each year thereafter. Determine the annual capital recovery cost..
q1. external and internal equilibria are often contradictory goals and the policy-maker is forced to choose between one
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