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Why might the Fed find it significantly easier to expand the money stock in a period of prosperity than in a period of recession? What must the Fed be able to do if it wants the quantity of money in the hands of the public to increase?
The management of the Mini Mill Steel company estimated the following elasticities for a special type of steel : Ep=2, EI=1, EXY= 1.5 and X refers steel and Y refers aliminum
Suppose that you are in the business of providing cat grooming services and you are a member of an association who has proposed legislation anybody wanting to offer cat grooming services would have to pay for extensive training and pass a series o..
a. using the data in the in-class handout example of a firm with market power calculate the price elasticity of demand
Explain how and why firms practice 3rd degree price discrimination. Use the handout to illustrate your answer (coupons; airlines, mobile phones).
Suppose the government reduces taxes by $20 billion, that there is no crowding out, and that the marginal propensity to consume is 3/4. a) What is the initial effect of the tax reduction on aggregate demand
Some news reports have suggested that the proposed tax would increase cigarettes prices by $1.00 per pack and be paid by smokers (cigarette buyers). Using (separate) competitive supply and demand diagrams of the cigarettes market carefully show an..
Suppose option A has a higher variance than option B. Which of the following statements is, in general, true?
Management is often faced with the alternative of continuing to make a product or component internally, or going to an external source and purchasing the product or component. In gathering relevant information for these two alternatives, briefly i..
5. you are at the company convention and your ceo gives a rousing motivational speech about how the company wants its
explain what is meant by fractional reserve banking. relate this to money creation and risk to the bank. which tool of
Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices
Why might banning advertising drive up prices? Why have economic analyses of clinical and administrative innovations become more important? What does it mean to have market power? Are firms with market power extremely profitable?
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