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a. “The money supply of an economy increases when the central bank simultaneously decreases the reserve requirement and sells government bonds in open market.” Explain whether this statement is true, false or uncertain.
b. What should money growth rate be if real output grows 4% per year, velocity grows 2% per year, and the central bank targets inflation to be 2% per year?
c. Explain what is the inflation tax?
d. Explain (with the aid of diagrams) whether the central bank can achieve the stability of interest rate and money supply at the same time when money demand changes.
Illustrate how increase in human capital affects production function. Blue line (circle symbols) in graph below shows production function.
q.units of labor marginal revenueproduct0 na1 302 243 184 155 126 10assume a firm is a monopsonist that can hire its
Marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the Robinson Crusoe model.
Do the following events represent business transactions? Explain your answer in each case.
A cinema hall has a capacity of 150 seats. The owner can oer students a discount on the price when they show their student
What are some examples of behavior that at one time wire victimless crimes that are no longer criminal.
In your opinion, have these measures been effective or ineffective in addressing the major concern or concerns of the business cycle?
When the wage rate increases, individuals recognize that the opportunity cost of leisure has risen, choose to substitute labor for leisure, and thus offer to work more hours. This is called the
Use supply and demand analysis to explain price reduction of computers. What effect did price reduction have on quantity of computers demanded.
Suppose a manufacturer estimates its marginal cost at $1.00 per pack, its own price elasticity at -2, and sets its price at $2.00. The company's settlement obligations are expected to raise its average total cost per pack by about $.60. What effec..
All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets?
q.the following outline provides a complete description of all economic activity in trivialand for 2003. compute gdp
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