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Q1. Analyze the following statement, and illustrate how would happen in the long run if such advice were followed by the Fed: "The increase in the stock market has increased person's wealth. As a result, their consumption has increased demand and output. So the Fed needs to increase supply of money because with higher income people's demand for real money balances will be higher." Draw and label the graphs.
Q2. Explicate how firms decide on where to produce depending on the marginal product and average product.
Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.
Racial also Ethnic Groups defines culture of poverty as a way of life which involves no future planning, no enduring commitment to marriage
New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.
If it wants to accomplish this change in the money supply using open-market operations, what should it do.
Suppose that the only input used in the generation of solar energy is sunlight
Illustrate what is the meaning of economies of scope and explain how do they differ from economies of scale.
South Korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. The U.S. can produce a maximum of 700 million toaster ovens or 1,000 million tons of rice per year.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.
Business firm that holds a global monopoly on a particular product but is currently selling the product only in its domestic market where its profits are substantial.
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
The social security system levies a tax on workers and pays benefits to the elderly. Suppose that Congress increases both the tax and benefit.
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