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A couple of politicians have advocated for a 'more transparent' Federal Reserve. Board Chairs Bernanke and Greenspan have followed a practice of using an implicit nominal target instead of an explicit one. Pick one side or the other and discuss the relative merits (the Politician or the Chair).
A basic difference between microeconomics and macroeconomics is that microeconomic examines the choices made by individual participants in an economy, whereas macroeconomics considers the economy's overall performance.Why?
What is the practical significance of income elasticity coefficients? Explain the significance using as examples an income elasticity of 3.0 for automobiles and an income elasticity of 0.20 for home-cooked meals.
Alpha Company is a competitive price-taker firm that is currently producing 100 units of output (Q=100). At the current level of production, the firm has Marginal Revenue of (MR=) $20, Average Variable Cost of (AVC=) $12, Marginal Cost of (MC=) $15, ..
The local school district wants to close down a neighborhood high school because its outdated heating and cooling systems make it too expensive to operate compared to the new high school being built nearby.
How could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this? Without this information, how would you make a decision?
Two of the benefits that consumers realize resulting from increased competition are lower prices and improved product quality.
An economy is operating with output $400 billion below its natural level, and fiscal policymakers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out...
Suppose an ad-valorem sales tax of v is levied on the producers. Find the effect of the ad-valorem tax on the equilibrium price.
A structure with a 40 year life span has an initial cost of $800,000. maintenance costs will be $30,000 every 5 years. how much money should the city borrow now to carry out the entire project including maintenance . the interest rate is 5%.
What are the major steps in capital budgeting? For what types of ventures do international managers typically engage in capital budgeting?
Does the monopoly determine the price of the good or the quantity supplied?
Assuming 8% interest, a 20-year analysis period, and no salvage value, which is the most economical installation?
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