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Over stimulating the economy: Suppose the economy today is producing output at its potential level and the inflation rate is equal to its long-run level, with --2%. What happens if policymakers try to stimulate the economy to keep output above potential by 3% every year? How does your answer depend on the slope of the Phillips curve?
Suppose the current money supply is $6,000. The required reserve ratio is 0.2. The Fed wants to increase the money supply by $600. Determine the following: All underlying work must be shown. What open market operation the Fed would have to take to ac..
Which of the following statements is sequentially correct?
A small truck is purchased for $22,000. It is expected to be of use to the company for 6 years, after which it will be sold for $4,000. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life..
Explain how total emissions can rise even though emissions per dollar of GDP substantially decline. Which of the two is more relevant for climate change? Why?
In the Solow model, describe the effects of a permanent increase of foreign aid.
Explain what happens in these two markets as the number of sellers drops to only one seller. c) explain how part b) illustrates to the first experimental principle
A local supermarket lowers the price of its vanilla ice cream from $3.50 per half gallon to $3. Vanilla ice cream unit sales increase by 20 percent. The store manager notices that the unit sales of chocolate syrup increase by 10 percent. What is the ..
You work for a company in India that manufactures and exports batteries and other charge storage devices. You are the sales manager for a DC-DC converter that is used to step up or step down the voltage in various industrial applications. You current..
Pharmaceutical Benefits Managers or PBM's are intermediaries between upstream drug manufacturers and downstream insurance companies. They design formularies (list of drugs that insurance will cover) and negotiate prices with drug companies.
q1. if consumption increases by 12 billion when real disposable income increases by 15 billion illustrate what is the
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 80-Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = Q1 and MC2 = 8. What is the profit maximizing..
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