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Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model.
a. graphically illustrate and explain what effect an decrease in the money supply will have on the economy. In your graphs, clearly illustrate the short-run and medium-run equilibrium.
b. When output is less than the natural level of output, explain what adjustments will occur in the labor market and discuss what effect they will have on output and the price level.
The Average Total Cost curve must be rising. The Average Total Cost curve must be below the Marginal Cost curve. The Average Total Cost curve must be above the Marginal Cost curve.
Find the values which maximize or minimize for the following function and determine where you have a maximum to minimum. Graph the function and discuss the context of concavity.
sales in joint facilities are lower than sales in two separate facilities. Elucidate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
The treasurer of a firm noted tha many invoices were received with the following terms of payment: "2%- days, net 30 days." Thus, if the bill is paid within 10 days of its date, he could deduct 2%. Or the full amount would be due 30 days from the inv..
The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $8186 per year, beginning at the end of year 1. How much should the company set aside today to pay for the coo..
Illustrate what is the effect of this policy on the interest rate in the long run.
What is the 99% confidence interval for the difference between the two school's scores. (For consistency, let the difference d=A-B.) b. Suppose we want to perform a two-tailed test where H0 is that ?d=0. What is (approximately) the p-value of the ..
In what situations will a court impose a strict liability standard instead of a negligence standard? Provide a real-world example of a strict liability case. Is imposing this standard fair? Are strict liability standards fair as a general rule?
A company in the process industry produces a chemical compound that is sold to manufacturers for use in the production of certain plastic products. The plant that produces the compound employs approximately 300 people. Develop a list of six different..
Natasha has been told that if she reduces the thermostat setting on the heating system at her home by 1 degree, she will be able to reduce her present annual energy consumption of 5,000 kWh of energy by 20%. What is the implicit cost of 1 kWh of ener..
Crowding out in the loanable fund: what does it mean? Please define: stock, bond, dividend, risk free investment. What are the functions of money? What is the difference between fiat money and commodity money?
Increase in Government expenditure makes increase in real GDP via multiplier process. If the effective multiplier for fiscal policy is 2, how much change in government purchases would be required to close a 500 billion negative output gap, other thin..
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