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Consider a one-time increase in the money stock by 3% relative to trend. Money supply initially grows at a constant rate of 2% per year. For one year, the money stock grows by 5% instead of 2%, and then returns to 2% growth. We may call this a temporary increase in the growth rate or equivalently a permanent shift in the level. How will inflation respond?
During March 2001 and March 2002, measured RGDP in the economy actually increased by about 2.5 percent, even though total employment in terms of hours worked declined through 1.8 percent and the unemployment rate increased sharply from 4.3 percent to..
How does using interest rates as operating or intermediate targets lead to procyclical (reinforcing the cycle) monetary policy How could policymakers use interest rates in the policy process and avoid pro-cyclical policy
your hospital is considering opening a satellite urgent care center about five miles from your main campus. you have
If Michelle devotes all her resources to growing potatoes, she can raise 200 pounts of potatoes per year. If she devotes all her resource to raising chickens she can raise 50 chickens per year. (If she apportions some resources to each
How would a downward change in the money supply affect someone personally How would it effect a person's career What impact would rational expectations have on a person's decisons in this situation
Elucidate unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.
What ideas and plans do you have about approaching each of the 3 main phases and related tasks? What are the pros and cons of PBL?
Consider a bank that receives an initial deposit of $1,000 and loans out the maximum from this that it can. This in turn is deposited into a second bank (which may technically be itself, but that doesn't change anything), which then loans out the ..
Suppose that a household in a two-period model has income of $30,000 in period 1 and $25,000 in period 2, and the interest rate is 75%. Assume that the price of the goods $1 in both periods. Suppose that the household decides to consume $26,000 in pe..
The table below shows the market basket quantities and prices for the base year year 1.Base year 1 Price in price Quantity base year yr 2 Product.
Suppose that the price elasticity of demand for automobiles is known to be -2.50. Will a shortage of steel (note: steel is the primary input into the production of cars) likely increase or decrease the revenues of car manufacturers? Carefully expl..
A country has the per-worker production function, y=5k^1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=..
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