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What is the difference between accomodating and non-accomodating responses to supply shocks? Explain how the Fed’s concern with keeping Y close to Y* comes into conflict with the goal of price stability.
The intuitive criterion by Cho and Kreps is a refinement to minimise the set of perfect Bayesian equilibrium in signalling games. What would a simple and intuitive example to explain this criterion be?
Which of the following describes the inflation-unemployment trade off?
Assume a fixed cost for a process of $15k. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. which of the following is the number of units that has to be produced and sold to break-even..
A woman went to the Bene?cial Loan Company and borrowed $9000. She must pay $350 at the end of each month for the next 30 months. What is the monthly interest rate she is paying? What effective annual interest rate is she paying?
Using the value of MPC = 0.8, and knowing the difference between the values of expenditure multiplier and the tax multiplier, it can be safely stated that the reduction of taxes by $400 billion (other things staying the same), Estimate increased leve..
A union evaluates job offers based on the
For each group identified in bold type below, use labor-leisure model to illustrate graphically and then explain the change in the quantity of leisure (and labor) desired. Be sure to explain how the group’s labor force participation rate is affected.
"On a supply-and-demand diagram, equilibrium is found"
The individual who encodes a message in the communication process is also most likely to be which of the following:
If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
McNair's Wheel of Retailing is a widely used model to describe the way in which retail outlets develop over time. In what ways does this model reflect reality? Can you think of situations where retailers do not follow this model?
A news clipping service is considering modernization. Rather than manually clipping and photocopying articles of interest and mailing them to its? clients, employees electronically input stories from most widely circulated publications into a databas..
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