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Demand and Supply
What happens to the equilibrium price and quantity of ice cream in response to each of the following? Explain your answers.
1. The price of dairy cow fodder increases.
2. The price of beef decreases.
3. Concerns arise about the fat content of ice cream. Simultaneously, the price of sugar (used to produce ice cream) increases.
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug. Management now estimates that it will cost $2 million to produce and market this new product.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.
What types of inefficiencies and/or externalities arise in each renewable resource case that interferes with sustainable and efficient management results?
A study sponsored by the American Medical Association suggests that the absolute value of the own price elasticity for surgical procedures is smaller than that for the own price elasticity for office visits. Explain why this would be expected
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
Japan has traditionally had an employment system characterized by a "lifetime" employment relationship between employer and employee and salaries that are based on length of service with the employer-starting low
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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