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In classical macroeconomic theory, the concept of monetary neutrality means that changes in the money supply do not influence real variables. Explain why changes in money growth affect the nominal interest rate, but not the real interest rate.
a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researcher.
You are to find a media article on tax legislation (passed or pending) and evaluate that legislations's effect on (1)the economy and (2) taxpayers standard of living and (3) taxpayers feeling about this legislation, and (4) the effect of the legislat..
Shirley thinks that two 8-ounce cans of soda are exactly as good as one 16-ounce can of soda. Suppose that these are the only sizes of soda available to her and that she has $30 to spend on soda. Write down Shirley's demand functions for general pric..
A recent industry report concluded that the global demand for the good X is expected to increase. Based on the demand projections given in the report Colaba, a firm that produces and sells X, is contemplating hiring more labor to increase production.
Using diagrams for aggregate expenditures (AE) and aggregate demand and supply (AD-AS), show the short- run effects each of the following events has on the Canadian economy. Be sure to identify the cause of any shift or movement along AE, AD, and/or ..
Stigler argued that the variation in fees increases as buyer information decreases. Suppose you observe that each seller in a market is charging the identical price. What potentially conflicting inferences can you draw?
Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.
Assume that the state government is interested in subsidizing the local production of steel. The current price of steel is $1600 per ton and the government wants to provide a subsidy of $100 per ton. In your diagram above, indicate the long-run post-..
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $5,000..
An increase in autonomous investment will cause equilibrium output to increase
Minimum wage legislation requires most firms to pay workers no less than the legislated minimum wage per hor. Using marginal productivity theory, explain how a change in the minim wage affects the employment of unskilled workers.
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