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Effects of monetary and fiscal policy on inflation
1.If the market price is less than the equilibrium price, what is the relationship of quantity supplied to quantity demanded? What will happen to the price?
2. If the market price is greater than the equilibrium price, what will be created in the market, and what will happen to the price?
3. What is the final impact of contractionary fiscal policy on the price-level and real output?
4. What is the final impact of expansionary fiscal policy on the price-level and real output?
5.What are the impacts of a tight monetary policy on the price-level and real output? When would a tight monetary policy be appropriate?
6. What are the impacts of an easy monetary policy on the price-level and real output? When would an easy monetary policy be appropriate?
Compute the effective price reduction resulting from the coupon promotion.
What is the present value of $300 to be paid in two years if the interest rate is 12%? What happens to reserves at Third National Bank if one person withdraws $2,000 of cash and another person deposits $750 of cash?
Compute the total revenue and total economic profit at each level of output. Compute the pizza shop's marginal costs and marginal revenue level of output. What is the profit maximizing rate of output for pizza shop?
Using the theory of oligopoly and the concept of prisoners dilemma, explain why the cigarette companies did not cut on advertising on their own to increase their profits before the law went into effect?
Explain why marginal product first rises, then declines, and ultimately becomes negative. What bearing does the law of diminishing returns have on short-run costs? Be specific.
Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
Assume if the inflation rate is 5percent is this still acceptable. Provide quantitative justification for your answer.
Explain the trade-offs between any three of these options. In other words, what will you gain, and what will you have to give up if you choose each of the three options?
Calculate the breakeven level for the subsiquent YoYo firm. The firm has overhead.
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
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