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"Suppose the economy has been experiencing zero inflation and five percent unemployment for several years. The government decides to lower the unemployment percentage by generating some inflation. You need to do the following:
1. Using the Grapher tool, create a graph showing what the short-run effects would be and what would happen in the long run. To save the graph, press the Alt+PrintScrn keys simultaneously. Open a Word document and insert the image by pressing the Ctrl+V keys simultaneously.
2. Give reasons to explain what government would have to do to keep the unemployment rate at 3 percent."
If an economy experiences increasing prospect costs with respect to two goods, then the production-possibilities curve between the two goods will be.
The Performance by Patrice (PbP) Company purchased a Centaur Computer controlled manufacturing milling machine for $635,000 for use in its rear end manufacturing operations on November 8, 2007.
Suppose nominal GDP in 2002 was $100 billion and in 2003 it was $260 billion. The general price index in 2002 was 100 and in 2003 it was 180. Between 2002 and 2003 the real GDP rose by:
If you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco.
Explain how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
government official proposed which gasoline price controls be imposed to protect the poor from rising gasoline prices.
If instead the Fed wants to stabilize aggregate demand, how should it change the money supply..
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
Explain how might you make profits by purchases or sales of bonds now,with the intention to sell in a few months' time.
If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
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