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Determine what impact will an unanticipated rasie in the money supply have on the real interest price, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Describe your answer.
Explain how would you go about resolving the issue if you were the president of a small, poor country.
Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.
Assume that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed following levels of production corresponding to different numbers of workers:
Two identical firms face linear demand. Market demand is given by P=30-Q.Solve for Stakelberg equilibrium prices and outputs.
Also address the impact of real GDP, the unemployment rate, and the inflation rate as measured by the consumer price index (CPI).
If the demand elasticity for a product is -2, and a profit-maximizing company sells the product for $10, determine its marginal cost?
Has the time come for government to abolish rent controls and minimum wage? What do you think? Do both rent controls & minimum wage laws achieve their intended purposes?
Explain how does the democratic political system lead politicians to emphasize points outside the production possibility curve.
Elucidate the pressures that increasing German interest rates put on the other European Union (EU) countries' currencies.
Question based on Laffer Curve : Tax Rate and Tax Revenue, Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?
The year is 2007, and the price elasticity of driving on Dulles Toll Road is 1.6. The owners of Dulles Toll Road raise the cost of a one way trip to $8.50.
Discuss how the aggregate expenditure function shifts in response to changes in each of time following variables:
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