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An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there. How could the central bank achieve this goal in the short run? What would happen in the long run.
One basic popular voting scheme is rank-order voting, where individuals assign a rank (1,2,3) to the possible alternatives; the assigned ranks are then added up and the alternative with the lowest sum wins. Consider a choice among the 4 alternativ..
Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling..
If J and K pay their Lindahl prices, what is the consumer surplus for J and K, respectively? What is the total consumer surplus for this society from consuming fireworks?d. Instead of their Lindahl prices, suppose J and K are each charged 2 per un..
Illustrate the point price, income, also cross elasticities at the present values. Interpret your answers, saying how much a 1% change in each variable impacts demand.
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Elucidate what was the actual price elasticity before the cartel was formed.
Explain how does the economist's use of the term rent differ from everyday usage.
Assume after 10 years real consumer spending doubles to 100. Explain how much do you believe will be the budget share of leisure.
Analyzing many indicators of the macroeconomic situations in an economy, which includes interest rate, income, CPI, inventory levels, wage, consumer confidence and unemployment.
If we assume that velocity of money is constant, does this zero-inflation goal require that the rate of money growth equal zero If yes, explain why. If no, explain what the rate of money growth should equal.
Why has the Federal Reserve selected this policy at this time? What efects does the Federal Reserve expect this policy to have on the U.S. economy?
Assume the entire economy contains $5000 worth of one-dollar bills. If people fail to deposit any of the dollars, but instead hold all $5000 as currency, how large is the money supply?
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