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Why should the govt monitor money supply? If we are in recession today, which one of the three tools of monetary policy would you suggest and why? And explain in detail how your choice of tool would help the economy?
Suppose that the economy is currently at potential output. Also suppose tht you are an economic policy maker and that a you have been asked to rank if possible, your most preferred to least preferred type of shock: positive demand shock
Explain how are people worse off when the price level rises as fast as their incomes
Now the industry is confronted with government regulations to oversee the merger. Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers indicating the most likely impact to p..
The business section of most major newspapers contains a table showing U.S. exchange rates. Find such a table and use it to answer the following questions. a. Does this table show nominal or real exchange rates? Explain. b. What are the exchange rate..
a. If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six? packs of beer? b. Write out a utility function to represent these preferences.
Assume labor's share of GDP is 70% and capital's is 30%, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3%.
In the wake of the energy crisis in California, many electricity generating facilities across the nation are reassessing their projections of future demand and capacity for electricity in their respective markets. As a manager at Florida Power & L..
An analyst is trying to determine the net social benefits generated by the city's public swimming pool. At the current admission price of $1.00, 400 individuals visit the pool annually. The total cost of the pool is $800 annually. Thus, the pool r..
In economics, demand for a product is considered downward sloping. This implies that quantity demanded rise when price reduce.
In addition, pi* is the central bank's target level of inflation , and b is some positive parameter. This rule states that the central bank raises the real interest rate above its long-run level when inflation is above its target and lower when it..
Plank's Plants had net income of $2,000 on sales of $50,000 past year. The company paid a dividend of $500. Total assets were $100,000, of which $40,000 was financed through debt.
A popular magazine reports that wrist watches are becoming the highest fashion craze. What affect will this have on the demand for watches, and what will happen to the price and quantity of watches sold on the market
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