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The quantity theory states that the impact of money on nominal GDP can be determined without details about the aggregate demand curve, so long as the velocity of money is predictable. Discuss the reasoning behind this claim.
Someone claims that under efficiency wage models "if the wage rate increases in a market with heterogeneous workers then we will have a shift in the labor demand curve, and not a movement along the curve". Do you thin..
Women have increased the amount of education they have achieved relative to men, and average years of schooling completed are now approximately the same for males and females. Human capital theory predicts that this would close the male-female ear..
What are financial intermediaries? How do these intermediaries function in the economy? What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
When does a recession begin and when does it end and the dating of a business cycle is done by the Business Cycle Dating Committee of the National Bureau of Economic Research
Arise in U.S. inflation causes many U.S. residents to buy gold, which is a major South African export good, as a hedge against inflation.
Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following government policies will move the economy from one long-run macroeconomic equilibrium to another.
A Company is planning whether to increase into a new territory. It has estimated the following according to possible changes in the economy. Determine their expected growth and risk measure of the growth.
Karen has kept her entire life savings, $50,000, in a floor safe underneath her bed. This morning, she make a decision to deposit her savings in a checking account at Cambridge Bank.
Identify a situation in the past 50 years in which the government used antitrust policies to stop a monopoly from occurring. Include the circumstances of the proposed monopoly and the reason the government stepped in.
Describe the role of Banking and Financial Intermediaries in the economy and how banks create money through lending, as well as the Deposit Expansion Multiplier.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.
Ellucidate why is it that wages are not dropping instead they are inching upward on a year to year basis.
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