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Suppose the bank of canada reduces the money supply by 5%.
a. what happens to the aggregate demand curve?b. What happens to the level of output and the price level in the short run and long run?c. according to okun's law, what happens to unemployment in the short run and in the long run? ( hint: okuns law is the relationship between out and unemployment)
d. what happens to the real interest rate in the short run and the long run? ( hint use the model for the real interest rate to see what happens when output changes)
You sell bicycle theft insurance. If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverse selection problem?
Who has a comparitive advantage in jigsaw puzzles? If Tom and Tessa specialize in producing the good in which they enjoy a comparative advantage, what are the quantities of jigsaw puzzles and kites produced?
Find the Cournot solution for the market price and output of mineral water and illustrate with a simple graph and the marginal revenue function facing a monopolist is given by: MR = 200-20Q Demonstrate that firms A and B have an incentive to coopera..
Supposing a products is produced both in the US and abroad what would be the effects of the US import quota on the good? Discuss some of the attributes of the new economy.
Almost all of the fossil fuels that we are now currently using were formed during the Carboniferous period. (b) There seems to be a strong correlation between increases in the availability of food energy per person and increases in human populati..
the rise of the dollar could batter the profits of some U.S. companies this year and slice into capital spending . a.which companies may have thier profits battered , and why b.why would this slice into capital spending
The opportunity cost of the debt is: The interest payments on the debt. Less of an issue if the economy is below full employment since crowding out is less likely to occur. Not an issue if the debt is financed internally. The decrease in public-secto..
An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and a ounce of coffee in 75 minutes. Who has the absolu..
When Wal-Mart locates in a smaller town, often the local retailers (e.g., hardware, clothing, and appliance stores) are unable to successfully compete and are driven out of business.
You're the GM of firm that manufactures PC's. Demand for them has dropped 50%, thanks to soft economy. The sales manager has identified only one potential client, who has received many quotes for 10000 new PC's.
Assume that a new law stated that any person could print their own money. Determine what kind of changes would come about in daily commercial transactions as a result of such a law?
Explain why a customer who select a consumption bundle in which relative price exceeds the marginal rate of substitution can not be at an optimum.
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