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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?
suppose that in a given period, 9% of the unemployed people will find jobs and 3% of employed people will lose their jobs. In the U.S, unemployment is at 8.1%, 1% of employed people will lose their job, and 19% of unemployed will find jobs.
For each market (a. & b.) would it be to the producer's advantage (i.e. would TR increase) to raise or lower price? If P0 = $10.00 and Q0 = 100 units, justify your answers by applying the interpretations of those price-elasticities of demand on t..
How should policy makers determine the amount of money that should be allocated for research curing heart disease? they should base their decision on the value of the total benefit of research on curing other diseases or else.
EBay claims that it has only a small problem with fraud also misuse of the sytem. Does this imply that it is overinvesting in addressing potention contracting problems.
Find the Cantina's minimum efficient scale and its average cost when operating at minimum efficient scale and find the Cantina's marginal revenue function.
Drowns indifference curve for consumption and hours of work. (Hint: in class we discussed indifference curves for consumption and hours of leisure
Describe the uncontroversial final effect of a contractionary monetary policy and an expansionary fiscal policy.
Suppose that a competitive industry is in long Run competitive equilibrium. Then the price of substitute good (in consumption) decreases. What will happen to the short run to
One person proposes an allocation (both objects go to person 1, both go to person 2, one goes to each person), which the other person then either accepts or rejects. In the event of rejection, neither person receives either object.
Provide a business or political example of the prisoner's dilemma from the field of game theory. What is the payoff for each participant in your example.
Due to the slow down economy, it is expected that there will be .7 million additional workers who will lose their jobs next month. Determine the expected unemployment rate for next month?
Dairy farm Industry a small producer of milk and cheese, has estimated the quantities of milk.
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