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A. How does monetary policy affect equilibrium GDP? How can it address the problem of recession or low growth? Inflation?
B. Other things being equal, what effect will each of the following have on the equilibrium rate of interest?
(a) an increase in the supply of money;
(b) an increase in the equilibrium level of national income;
(c) a decrease in the supply of money;
(d) a leftward shift of the asset demand for money.
When farmers raise hogs, there are a number of external costs. In particular, hogs generate methane gas. Without government regulation, the equilibrium price and quantity of ova raised means that:
A firm production function is given by q = f(k,l) = k·l. q0 = 100. w = $20, v = $5. At the point at which this firm minimizes the cost of producing q0, it uses how many unit(s) of labor and how many unit(s) of capital? NOTE: write your answer in numb..
Suppose that you can schedule a worker for up to 10 hours per day. The total benefit and total cost functions are B(H) = 1200 × √H and C(H) = 200H. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 600/√H and MC(H) = 200. ..
Can the government correct market failures? More specifically, discuss the approach/es that the current Chinese government has taken to dampen decreasing prices in the Chinese stock market. (has it been effective?)
If the tort system were deemed a method of social insurance rather than one of deterrence of uneconomical accidents, would awards in tort cases be on average higher or lower than under the deterrence rationale?
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. What is the amount of the ..
If a political candidate said that if she were elected to Congress, she would work toward cutting federal government spending by one-third over the next four years, would she stand much chance of fulfilling her promise? Why or why not? Discuss the pr..
problem set one1-price-elasticity of
The manager of Haines Company observes that the morale of employees in her company is low. She thinks that if their working conditions are improved, pay scales raised, and the vacation benefits made attractive, the morale will be boosted. Her conject..
The component of Planned AE (the quantity demanded of GDP) MOST sensitive to a change in interest rates is....
In your own words, (briefly) describe the "Lucas critique", and explain how the "modern micro-founded" method of macroeconomic modeling attempts to address the Issue that the Lucas critique raised about the "traditional" approach to macroeconomics th..
Sammy has a drone that he values at? $1,500. Frank values the same drone at? $1,000. The government offers a subsidy of? $800 to the buyers of? drones, and Sammy and Frank agree on a price of? $1,600. The subsidy creates a deadweight loss of how much..
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