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1- In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
2- Briefly explain the meaning of "the full-crowding out" and "the neutrality of money" in the Classical model. What do they imply about the effectiveness of government policies to improve the economic performance of a country?
"A substantial number of relatively unskilled persons reported that they can't find work. At the same time, there're many unfilled jobs for relatively skilled people. Apparently, the problem is that there're more unskilled peop..
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
What is the profit-maximizing price and output? What is the total profit? What is the price elasticity of demand at the profit maximizing output?
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
What are the FC, ATC, AFC, AVC and MC at these output levels?
Your company is considering expanding overseas. It is particulary interested in developing markets, and narrowed its choice down to two countries, A and B.
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
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