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1. The neutrality of money
a. In what sense is money neutral? How is monetary policy useful if money is neutral?
b. Fiscal policy, like monetary policy, cannot change the nat- ural level of output. Why then is monetary policy consid- ered neutral but fiscal policy is not?
c. Discuss the statement "Because neither fiscal nor mon- etary policy can affect the natural level of output, it follows that, in the medium run, the natural level of output is in- dependent of all government policies."
If a customer withdrew $2,000 in cash from a bank and the reserve ratio was 0.2, by how much could the supply of money eventually be reduced?
The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The total cost function (including opportunity or impl..
A sum of $16,000 per year will be recieved uniformly over a five year period beginning two years from today. What is the present value of this deferred-funds flow if interest is compounded continuously at a nominal rate of 9%
Assume the wage is $8. Complete the following table: Workers Total Product Marginal Product of Labor Price Marginal Revenue Product (MRP) 1 17 2 2 31 2 3 43 2 4 53 2 5 60 2 6 65 2 What are the two effects of a price change
To prevent inflation, the Bank of Canada should follow Teddy Roosevelts advice: Speak softly and carry a big stick.
Analyze the importance of the tradition to the Ganguli family. Why do they continue to practice this tradition? What value does it hold for them?
The market demand curve for an industry with two identical firms is P =102-2Q, where Q = Q1+ Q2.The constant per unit marginal cost is 2 for each firm. i) If the firms form a cartel to maximize industry profit What is the industry level of output
TC= 41,000,000+0.005Q 2 MC= TC/ Q =$500 +0.01Q calculate profit maximizing activity level and optimal profit, and optimal profit as percentage of sales revenue. profit maximization problem
What do think would happen to competition in the industry where you work if, say, a certain number of firms would close down? What would happen to their price-making ability?
Using the numbers related in the Application, draw a supply and demand graph showing the effects of the Allies wolfram-buying program. Your supply curve should be a long-run curve, which incorporates the entry and exit of firms.
Suppose that you are the manager of an accounts receivable unit in a large company. You are switching to a new system of billing and record-keeping and need to train your three supervisors and 28 employees in the new procedures. What training me..
project management and systems engineering are divided into two distinct categories. What management tasks are missing from the figure?
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