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1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain
2. How rapidly has the money supply (M1) grown during the past twelve months? State the rate of growth and the most recent release, use the seasonally adjusted figures. Calculate the rate of growth across the year. Given the state of the economy, should monetary authorities increase or decrease the growth rate of money? Explain why.
Compute the implied arc price elasticity of demand. Is a further price decrease warranted.
The Rusty Anchor Bar has two-types of patrons: legal and underage drinkers. Even though it is illegal to allow entry to underage drinkers, there is no perfect way to identify underage drinkers since they often use fake identification card.
Suppose a closed economy, with fixed prices, represented by the following set of equations, Where, D is the aggregate demand, and C is consumption;
Discuss how monetary policy works to help achieve economic goals and discuss how national economies interact with each other to achieve their individual economic goals. (This is a question about foreign trade
Suppose that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision.
Explain why does the minimum salary seem to have the greatest impact on teenagers.
One supply-side measure introduced by the ReaganAdministration was a cut in income tax rates. Use an aggregatedemand/aggregate supply diagram to show what effect was intended.What might happen if such a tax cut also shifted the aggregatedemand cur..
suppose the firm is facing an output constraint - specifically , the maximum allowable output is 480 units - that is Q
In a short run situation in which quantity demanded equals quantity supplied in a competitive industry, with price greater than the average cost of the typical firm,
Your employer has just assigned you to a six-month project in Europe and you leave next week. You have just decided to list your house for sale and you have an agreement with ABC Realty to market your house. You need to appoint someone to act as ..
Recommend two to three best practices for leveraging information regarding exchange rates to maximize their profitability. Provide examples to support your response. Discuss how the current economic environment affects the exchange rate between the..
Ricardo believed that the target of economic analysis was to understand the distribution of income between three major classes: capitalists, workers, and landowners.
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