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Please explain it in details (at least 100 words)
At times, the Federal Reserve tries to change inflationary expectations. Why would the Fed want to raise inflationary expectations? How would this strategy of raising inflationary expectations affect consumption and investment? Be sure to tie your answer back to the two-period consumption model and the uc/MPKf model.
A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S. and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles. $70 million worth of these automobiles are purchased b..
q.alices utility is given by x as well as y are goods as well as l is the amount of hours that alice works. alice can
How would an increase in capital goods, holding the size of the labor force constant, help to make workers more productive and increase economic growth? Explain how a technological advance can contribute to economic growth. Why do institutions such a..
Suppose that one firm is the only employer of a certain labor service (i.e., the firm is a monopsonist). Assume its MRPL is given by L= 11 - w and the labor supply is L = W. What is the wage paid and the number of labor hours hired by the profit maxi..
The Theory of the Firm document, the Friedman article, and the information in chapter 4 argue that the main goal of a firm in a market economy is to maximize profit (shareholder wealth) over the long term. However, SEC regulations require U.S. corpor..
At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. In what way is fiscal easing in Japan relevant h..
According to the Keynesian view “Businesses will undertake all investment projects for which the expected rate of profit equals or exceeds the interest rate.” Explain what this means.
q.suppose that the supply curve of healthcare ser-vices is perfectly inelastic i.e. vertical. analyze the impact of an
Kaylee wants to buy a machine shop on Beaumonde and someday retire from space flight. She purchases a contract to buy a little shop 10 years from today. At that time, it will be worth $40,000. What is the shop worth to Kaylee today? Kaylee has a disc..
Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected.
Assume that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition.
Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals ..
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