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Suppose that, in an economy initially at full-employment, the central bank increases the money supply.
a) How will this affect output and unemployment in the short run?
b) How will this affect output and unemployment in the long run?
c) Use an AS-AD graph to show the transition from the short run to the long run.
What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant. Elucidate what money supply should the Fed set in year 2009 if it wants to keep the price level stable.
If amazon.com's revenue increased after it cut the price of books, dvds, and blu-rays what must be true about the price elasticity of demand for ordering these goods online?
Kramer Smith owns a dry-cleaning service also is thinking about changing his advertising expenditures for the year.
What happens to the price level pt when the money growth rate m changes, holding the current money supply mt constant?
If the number of suppliers in the micro calculator industry increases, illustrate what would we expect to happen.
Find out the equation for the linear supply curve which fits this information. What would the new equilibrium price and quantity be if supply were to increase by 20%.
If you were to learn about a bottle of gatorade increased in size from 2009 to 2010, should that information affect your calculation of the inflation rate. If so, how.
If consumption and government purchases go up, what happens to GDP in the long run. Show this graphically.
Fifty years later, the federal resources for public education shows approximately 10% of the public education budget.
What are the key points in a short-run production function that delineate the three stages of production? Explain the relationship between the law of diminishing returns and the three stages of production.
The unsold computer is carried on XYZ's books as an $800,000 increase in inventory.
If an economy experiences increasing prospect costs with respect to two goods, then the production-possibilities curve between the two goods will be.
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