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Part I
Note that graphs, while helpful in explaining pertinent concepts, are not necessary for successfully answering these questions. A good written description of market processes will suffice as well
1. Explain the process through which each of the following affects the money supply:
The Fed buys bondsThe Fed raises the discount rateThe Fed raises the reserve requirement ratio
2.Explain the dynamics through which an increase in the stock of money affects real output and the price level in the short run.
Part II
1.Which fiscal policies might "activist" Keynesian economists recommend to help a depressed economy regain full employment? Explain how they work.
2.Critics of Keynesian policies cite the problem of ‘lags', and of ‘crowding out'. Illustrate what are they, and what impacts do they have on the outcomes of Keynesian countercyclical policies?
discuss the one presented in the Bruntland Commission Report
Prepare a table with values from all four cases as well as compare the sensitivity of the model solution to changes in parameter values.
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
Illustrate what will the average total cost be after 1 unit is produced. Elucidate what impact does the dollar appreciation have on the firm's international competitiveness.
What happens to the profits of boat makers in the short run. What happens to the number of boat makers in the long run.
Which determinant of demand changes in the personal Computer marketplace as more persons become interested
At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3.
Results of drilling are 15 dry holes, 12 gas producers, 18 oil wells, and 20 wells producing both oil and gas.
Find out the ash equilibrium outcomes to this game. Illustrate which of the equilibrium outcomes is most reasonable.
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
Calculate the four combinations of outputs of corn and rice for these 4 plans.
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