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Suppose a natural real output in the economy of Eudemonia grows at a steady rate of 3 percent per year. In the past, velocity has been approximately constant, and the Eudemonia Central Bank (ECB) has maintained a target rate of growth of 4 percent per year for the money stock. What would be the resulting rate of inflation? Now suppose that the introduction of Internet banking allows people to make transactions online without holding large amounts of currency or bank balances. As internet banking spreads, velocity begins to increase at a rate of 3 percent per year. What will happen to the rate of inflation? How could the ECB offset the impact on inflation, if any?
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results.
Suppose the demand for pizza is given by Q=40-2P and the supply of pizza is given Q=P-8. if the price of pizza is $19, Illustrate which of the subsiquent is true.
Why the incidence of the tax a consideration when government imposes this tax increase.
There has been much political discussion about redistributing income. These ideas are not new. Name and elucidate the three political philosophies of redistributing income. Do you believe any of them have merit.
Find the profit-maximizing choice of q for this miniature farm; also compute profits that will be earned at this choice of q.
barbers who have turned farmers will drive down wage rate but will still be earning more than if y had remained barbers. Who benefits from technological progress in farming Farmers or barbers.
Illustrate what price and quantity of computers should you produce to maximize your firm's profits. Explicidate long adjustment should you anticipate.
Elucidate how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
Estimate the regression coefficients using ordinary least squares also interpret them. Predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle.
neither person may trade away any water to the other for exchange for more bread. Set up an Edgeworth Box to depict this situation and elucidate why it is unlikely to be Pareto efficient.
Elucidate how the strength of the economy as a whole could affect the marginal benefits also the marginal costs associated with a decision to purchase a home.
Identify and explain five major factors that affect the demand for starbucks. Illustrate what do you think will happen to these factors over the next year.
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