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Use the following information for the next 9 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 7%, the growth rate of the velocity of money is 2% and that the real economic growth rate is 4%. Now assume that the Federal Reserve has decided to increase the growth rate of the money supply by 4% and that the Federal Reserve leaves the growth rate of the money supply at this elevated rate.
1. After the Federal Reserve increases the growth rate of the money supply, what is the new real economic growth rate in your graph?
2. Now think about the point that the economy ends up at that is the new long-run equilibrium. What is the real economic growth rate?
The market marginal benefit for milk (in gallons) is given by MB = 132 - 8/3925 Q. There are two firms in the market that produce milk. The first firm’s marginal cost curve is given by MC1 = .0003125Q, while the second firm’s marginal cost curve is M..
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Elucidate how closely do real world conditions match the charateristics listed in the model. Do they compete using price. Is the good in question standardized.
The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all. In 2001 and 2002, McDonald's tried to improve the quality of its service by hiring mystery shoppers to evaluate servic..
If there are no fixed costs of production, the q that solves the firm’s first-order condition is
According to Van Wormer and Link (2015), the faith that even the most disreputable or downtrodden of clients can find some progress in life if they are treated with respect while working on their difficulties is an inherent part of the social work im..
Identify a few ads for brands that have been endorsed by United States celebrities. Try to use examples your classmates haven't already posted (i.e., review the papers posted before yours). What is the effect of the celebrity’s attractiveness, likeab..
Explain the concept of devaluation, and explain the effect devaluation has on the price of a country's imports. What some effects on the industry? Buying and selling countries? Give an example that supports your claims.
The price of transplantable human organs has increased significantly in recent years. Why do you think that has occurred? Organ transplants are expensive. The hospital and medical personnel earn lots of money and the recipient pays lots of money. No ..
Suppose Nike and Adidas spend enormous sums of money every year to promote their athletic wear, hoping to steal customers from each other. Furthermore, assume each year they have to decide whether or not they should spend more money on advertising. ..
Tracy won a $100 million jackpot. She can receive the jackpot as a $5 million payment each year for 20 years, or she can ask to receive the present value of all those payments all at once now. Assume an annual interest rate of 5 percent. If she decid..
What is the motivation for a bond issuer to issue bonds in a foreign market?? What are the positive economic effects of these transactions for the issuer/investor’s home economy and for the world’s economy? Negative effects?
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