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Q1. Suppose the general public purchase $500 million in government bonds and pay for them by drawing cheques on their chartered bank deposits.
(i) Calculate the (target) reserve requirement.
Q2. If the economy currently has a frictional unemployment rate of 2% structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, what is the natural rate of joblessness? Explain where is the economy operating relative to its potential GDP?
Assume an endogenous growth model with labour augmenting technology.
Effects on equilibrium cost as well as quantity when wages for all dental assistants enhance, increasing the expenses of inputs.
Eastman Kodak filed for a bankruptcy in January 2012. Using our analytical framework of nine areas of interest introduced in class explain the main causes of the company's misfortunes.
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
Suppose the economy is in a recession and per capita disposable income is expected to decrease by 5%, then what percentage effect on sales would you expect to take place.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Gains from trade will result if a country specializes.
Price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus.
Alchemy allows the other firms to sell as much as they wish at the established price and supplies the remainder of the demand itself.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
How many units of good X will be purchased when Px=4910, determine the inverse demand function for good x.
Store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users.
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