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Question: A consumption boom: Using the IS-MP diagram, explain what happens to the economy if there is a temporary consumption boom that lasts for one period.
(a) Initially, suppose the central bank keeps the nominal interest rate unchanged.
(b) Suppose you are appointed to chair the Federal Reserve. What monetary policy action would you take in this case and why? Refer to the IS-MP diagram.
Defend your view on whether monetary policy should be expansionary, contrationary, or neutral right now. Be careful to identify the poaitive reasons for your normative position drawing upon the current state of the economy and macroeconomic theory.
what is meant by inflation? write down the causes of inflation? is inflation desirable and what can be done to control
Regulators are considering controlling the emissions from two local power plants. The marginal benefits (the demands for effluent) derived by these plants from being able to produce a given quantity of effluent are 10,000-Q1 for the first plant and 1..
Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. The firm currently uses a standard pricing strategy. Which of the following will allow the firm to enhance the profits?
In the diagram draw the marginal social cost line that illustrates this. Add a marginal social benefit line that shows how the additional benefits of control decrease. Identify the optimal level of water quality. Suppose the government mandates co..
Explain what causes changes in supply and demand? Your answer should clearly state and explain the 3 Economic factors that lead to a new supply curve.
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Federal Funds Rate in order to achieve macroeconomic objectives.
Suppose that you are the only seller of paper in the market, and you know that John already has a printer, how much will you charge him for the (100 units of) paper?
write a 750-word essay on how the environmental protection agencys policies impact business in the united states.use
Assume that the price of silk ties in a perfectly competitive market is $19 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 8 9 10, Total cost $10 $17 $26 $37 $50 $65 $82 $101 $122 $145 $170
(library research) Explain (a) in what way the US trucking industry exemplified the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980 and (b) the result of hte passage of the Motor Carrier Ac..
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