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Question 1
Money demand in an Economy in which no interest is paid on money is...
= 500 + 0.2Y -1000i
a. You know that P = 100, Y = 1000, and i= 0.10 Find real money demand, nominal money demand, and velocity.
b. The price level doubles from P = 100 to P = 200. Find real money demand, nominal money demand, and velocity.
c. Starting from the values in (a), determine how velocity is affected by an increase in real income (Y), an increase in the nominal interest rate, and an increase in the price level.
Consider the following demand schedule. Does it apply to the perfectly competitive firm? Calculate marginal and average revenue.
Office building maintenance plans call for stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology and labor requirements are very basic.
When the CR = 80%, is the market efficient when the market behavior follows the price leadership model?
For each of the following transactions, identify whether or not it would be included in GDP: What is Metrica's GNP? Is it higher or lower than its GDP?
The demand for new motor homes in the US is highly cyclical and sensitive to diesel fuel values and interest rates. Given these characteristics, explain the effect of the following on quantity demanded
Distinguish between explicit & implicit costs, giving example of each and what are the explicit & implicit costs of attending college?? Why does the economist classify normal profit as a cost?
Describe (include an explanation of economic profit in your explanation). Will price be higher or lower under such the agreement in long-run equilibrium than would be the case if firms didn't collude? Discuss.
Develop a preliminary SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for QMC. Because this is a new target market with a smaller computer, you want to make sure you are including your current customers. Be sure to consider your com..
Someone claim that immigration must always be good for economy because the raised supply of labor will result in a higher GDP. Estimate this statement.
What is the difference between elastic and inelastic demand. Please be precise. If a restaurant increases its price of coffee from $ 1.00 to $ 1.20 and quantity demanded falls from 100 cups to 80 cups. How can I compute the price elasticity of dema..
What specific standard is applied to a firm whose only contact with a forum state is through its Internet site? If you had an eBusiness, what could you do in order to limit your liability to suit in multiple jurisdictions?
Critics of the minimum wage discuss that as an antipoverty device it is "poorly targeted." By this they mean that:
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