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Money supply : key informaiton
Suppose banks install automatic teller machines on every block and, by making cash readily available, reduce the amount of money people want to hold.
a.Assume the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to the aggregate demand?
b.If the Fed wants to stabilize aggregate demand, how should it respond?
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
If the elasticity of US exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
Assume the U.S. government determines that cigarette smoking creates social costs not reflected in the current price of cigarettes
Questions on Long-Run Labor Demand and Factor Substitutability, Own-price elasticity, Cross-price elasticity
Describe the provider's equilibrium salary and how many nursing units it will hire.
Explain how do the principles of microeconomics which you have leaned in this course apply to other nations.
Explain how does the marginal price for a product like this differ from a product like automobiles. What relevance might there be to this difference.
Illustrate what would each political philosophy of utilitarianism, liberalism, and libertarianism likely suggest should be done in this situation.
Assume the problems of maximizing solves the first problem if and only if it also solves the second problem.
Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?
Elucidate entity establishes a price ceiling also does it require government sanction for violators
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