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How lower interest rates affect the economy
Suppose that the Federal Reserve acts to lower interest rates. How this will affect the U.S. economy?
After the economic slowdown that started around the third quarter of 2000, the Fed lowered interest rates eleven times in the following year, 2001. What concerns would have about the effort by the Fed to smooth out this economic recession?
In contrarily, suppose that the Fed unexpectedly increases the rate of money growth. What are the effect on short-term and long-term interest rates, and why those effects are different.
Explain how is the aggregate supply curve different from the supply curve for a single good like pizza.
The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold.
Explain how much should the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
Do comparision with the economics of the two following service producing alternatives.
RainAway, Inc., makes polymers used to coat the windshields of car's, planes, and boats-Complete the following table based on the RainAway product's price, output and costs per year:
Elucidate the historical relationship between unemployment and inflation.
Elucidate the one thing, regarding the role of the government that separates classical economic theories and Keynesian economic theory.
Elucidate the relationship among budgeting and financial reporting in government.
Describe events that might lead to a disequilibrium in the market for gasoline.
What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
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