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You are the Chairperson of the Federal Reserve, the date is June 2009 and a recession is ahead. Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply graph, an Investment graph, and a GDP graph to show how monetary policy effects GDP. You also need to use the money multiplier, MPC and the GDP multiplier on the GDP graph.
Discuss the Coase Theorem. Illustrate what this theory imply about the role of goverment in dealing with market externalities.
Draw a graph describing the demand and supply curves before and after the tax. describe graphically the tax revenue and how it is shared between the consumers and suppliers (producers) of gasoline.
In the short run, company that seek to maximize their market share will tend to charge lower price for their products than firms that seek to maximize profit.
Explain why do think the European Union countries decide to have a single central bank and a single currency, instead of just agreeing to maintain fixed exchange rates among their currencies.
Calculate the cash flows at the end of each trading day and compute your total profit or loss at the end of the trading period.
Explain the effect of such a shock on the equilibrium of the DAD-DAS model - Suppose that at time t-1 inflation is zero and there were no shocks in the economy.
Suppose the relationships hold true and given performance below, what salary would you estimate for each player in 2006.
Explain why do people who work at investment banks earn so much. What is the justification for capital requirements imposed by bank regulators.
Utilizing the supply and demand model, explain what would happen to the supply curve during a drought. Also explain the affect on the price of water.
The Government budget has been making at a deficit of approximately $60 billion for the last year, up from $50 billion the previous year.
In the context of a supply demand diagram of low skill labour market, a minimum wage above competitive equilibrium will decrease employment relative to competitive equilibrium.
Explain how do the principles of microeconomics which you have leaned in this course apply to other nations.
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