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An automatic stabilizer:
a. requires congressional and presidential approval each time the employment rate increases by a percentage point
b. automatically dampens the swings in the business cycle
c. both increases and decreases the money supply as needed
d. all of the above
e. both a) and b) are correct
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
Using the fundamental equations from the simple monetary approach, describe how each of the following will affect the home and foreign price level, real money balances, and the exchange rate, EH/F . Also, state whether the home currency appreciates o..
Illustrate what is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchase is 12 times per year.
Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.
Aggregate demand and aggregate demand curve. The three reasons that explain the downward slope nature of the AD curve. Please list some factors that shift the AD curve to the right or left. Please explain why the SRAS curve is upward sloped and LRAS ..
The public cash withdrawals from banks decrease the central bank liabilities and shrink the size of the banking system balance sheet. Do you agree or not? Explain your answer. Use the Fed and the banking balance sheet to support your answer.
A firm faces a demand where q=20-P. q is quantity demanded, P is price. Its total cost function is TC = 2q^2 + 2q + 20. How many should it produce to maximize profit? What is the price it charges to its consumers?
Demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew. The mayo clinic in Minnesota is known for top-quality medical care.
The business cycle is really inevitable and will occur no matter what. So what is the point of macro policy? (Make sure you know what “policy” means)
Pretend that you are opening up a new restaurant in your neighborhood. Describe how you would use digital technology including an outstanding customer database to maximize the relationships with your customers. What could you do in order to obtain pe..
Suppose that a certain industry is competitive and there are many firms all with the same cost function given by: LRTC=q3 - 2 q2 + 2q (MC = 3 q2 – 4 q + 2 ) The industry inverse demand curve is given by: p = 11 - .2 Q Find LR equilibrium q, Q, n, p, ..
You operate a small but popular and profitable restaurant/bar in a college town. There are several other restaurants and bars nearby. You have conducted a market research study and discovered that the price elasticity of demand for local residents is..
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